BNAD 301 EXAM 2 COMPREHENSIVE STUDY
SHEET 2026 SOLVED QUESTIONS PREMIUM
BUNDLE
◉ If stock market prices are falling, then more people feel ___________.
Answer: poorer
◉ People, in general, do not lend money to one another to buy a
house or a car because:
A. of information problems.
B. they do not know about the capacity of other people to repay their
debts.
C. they do not know about the effort other people will provide to
repay their debts.
D. All of the above..
Answer: D
◉ How would your answer explain the existence of banks?
,Banks exist because:
A. they are able to lend money without requiring any collateral.
B. they are able to mitigate information problems.
Answer: B
◉ Which of the following is not an important financial intermediary
in the economy?
A. Finance companies.
B. Commercial banks.
C. Credit unions.
D. The Fed..
Answer: D
◉ Economists group commercial banks, savings and loan
associations, credit unions, mutual funds, mutual savings banks,
insurance companies, pension funds, and finance companies
,together under the heading financial intermediaries. What function
do financial intermediaries perform?
A. They produce nothing of value and are therefore a drain on
society's resources.
B. These institutions can hurt the performance of the economy.
C. They are a source of slow and resistant financial innovation.
D. They provide a channel for linking those who want to save with
those who want to invest..
Answer: D
◉ Banks, savings and loan associations, mutual savings banks, and
credit unions:
A. are no longer important players in financial intermediation.
B. have been adept at innovating in response to changes in the
regulatory environment.
, C. have been deregulated and now provide services only to small
depositors.
D. produce nothing of value and are therefore a drain on society's
resources..
Answer: B
◉ ____________________ are institutions that borrow from people who
have saved and then lend to others..
Answer: financial intermediaries
◉ Which of the following are the largest financial intermediaries in
the U.S. economy?
A. Insurance companies
B. Mutual funds
C. Finance companies
D. Banks.
Answer: D
SHEET 2026 SOLVED QUESTIONS PREMIUM
BUNDLE
◉ If stock market prices are falling, then more people feel ___________.
Answer: poorer
◉ People, in general, do not lend money to one another to buy a
house or a car because:
A. of information problems.
B. they do not know about the capacity of other people to repay their
debts.
C. they do not know about the effort other people will provide to
repay their debts.
D. All of the above..
Answer: D
◉ How would your answer explain the existence of banks?
,Banks exist because:
A. they are able to lend money without requiring any collateral.
B. they are able to mitigate information problems.
Answer: B
◉ Which of the following is not an important financial intermediary
in the economy?
A. Finance companies.
B. Commercial banks.
C. Credit unions.
D. The Fed..
Answer: D
◉ Economists group commercial banks, savings and loan
associations, credit unions, mutual funds, mutual savings banks,
insurance companies, pension funds, and finance companies
,together under the heading financial intermediaries. What function
do financial intermediaries perform?
A. They produce nothing of value and are therefore a drain on
society's resources.
B. These institutions can hurt the performance of the economy.
C. They are a source of slow and resistant financial innovation.
D. They provide a channel for linking those who want to save with
those who want to invest..
Answer: D
◉ Banks, savings and loan associations, mutual savings banks, and
credit unions:
A. are no longer important players in financial intermediation.
B. have been adept at innovating in response to changes in the
regulatory environment.
, C. have been deregulated and now provide services only to small
depositors.
D. produce nothing of value and are therefore a drain on society's
resources..
Answer: B
◉ ____________________ are institutions that borrow from people who
have saved and then lend to others..
Answer: financial intermediaries
◉ Which of the following are the largest financial intermediaries in
the U.S. economy?
A. Insurance companies
B. Mutual funds
C. Finance companies
D. Banks.
Answer: D
