Monetary Economics (ECS3701) Selected Examination Questions and suggested solutions 2023

Markets in which funds are transferred from those who have excess funds available to those who have a shortage of funds available are called ________ _______. - -financial markets -A key factor in producing high economic growth is ______-______ ________ ________. - -well-functioning financial markets -The bond markets are important because they are the markets where _______ _______ _____ _______. - -interest rates are determined -The prices paid for borrowing funds (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the ________ ______. - -interest rate -Everything else held constant, a decline in the interest rates will cause spending on housing to _______. - -rise -An increase in interest rates might _______ saving because more can be earned in interest income. - -encourage -When stock prices fall an individuals wealth may ________ and her willingness to spend may ________. - -decrease, decrease -When I purchase a corporate _______, I am lending the corporation some funds for a specific time. When a purchase I a corporation's ________, I became an owner in the corporation. - -bond, stock -______ provide a channel for linking those who want to save with those who want to invest. - -Banks