, Test Item File
for
Financial Markets and Institutions
Eighth Edition
Frederic S. Mishkin
Stanley G. Eakins
Copyright ©2015 Pearson Education, Inc.
,Executive Acquisitions Editor: Adrienne D’Ambrosio
Editorial Project Manager: Erin McDonagh
Production Project Manager: Alison Eusden
Copyright © 2015, 2012, 2009 Pearson Education, Inc. All rights reserved. Manufactured in the United
States of America. This publication is protected by Copyright, and permission should be obtained from
the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any
form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain
permission(s) to use material from this work, please submit a written request to Pearson Education, Inc.,
Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your
request to 201-236-3290.
ISBN-13: 978-0-13-342682-3
ISBN-10: 0-13-342682-3
www.pearsonhighered.com
, Financial Markets and Institutions, 8e (Mishkin)
Chapter 1 Why Study Financial Markets and Institutions?
1.1 Multiple Choice
1) Financial markets and institutions
A) involve the movement of huge quantities of money.
B) affect the profits of businesses.
C) affect the types of goods and services produced in an economy.
D) do all of the above.
E) do only A and B of the above.
Answer: D
Topic: Chapter 1.1 Why Study Financial Markets
Question Status: Previous Edition
2) Financial market activities affect
A) personal wealth.
B) spending decisions by individuals and business firms.
C) the economy's location in the business cycle.
D) all of the above.
Answer: D
Topic: Chapter 1.1 Why Study Financial Markets
Question Status: Previous Edition
3) Markets in which funds are transferred from those who have excess funds available to those
who have a shortage of available funds are called
A) commodity markets.
B) funds markets.
C) derivative exchange markets.
D) financial markets.
Answer: D
Topic: Chapter 1.1 Why Study Financial Markets
Question Status: Previous Edition
4) The price paid for the rental of borrowed funds (usually expressed as a percentage of the
rental of $100 per year) is commonly referred to as the
A) inflation rate.
B) exchange rate.
C) interest rate.
D) aggregate price level.
Answer: C
Topic: Chapter 1.1 Why Study Financial Markets
Question Status: Previous Edition
1
Copyright © 2015 Pearson Education, Inc.
for
Financial Markets and Institutions
Eighth Edition
Frederic S. Mishkin
Stanley G. Eakins
Copyright ©2015 Pearson Education, Inc.
,Executive Acquisitions Editor: Adrienne D’Ambrosio
Editorial Project Manager: Erin McDonagh
Production Project Manager: Alison Eusden
Copyright © 2015, 2012, 2009 Pearson Education, Inc. All rights reserved. Manufactured in the United
States of America. This publication is protected by Copyright, and permission should be obtained from
the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any
form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain
permission(s) to use material from this work, please submit a written request to Pearson Education, Inc.,
Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your
request to 201-236-3290.
ISBN-13: 978-0-13-342682-3
ISBN-10: 0-13-342682-3
www.pearsonhighered.com
, Financial Markets and Institutions, 8e (Mishkin)
Chapter 1 Why Study Financial Markets and Institutions?
1.1 Multiple Choice
1) Financial markets and institutions
A) involve the movement of huge quantities of money.
B) affect the profits of businesses.
C) affect the types of goods and services produced in an economy.
D) do all of the above.
E) do only A and B of the above.
Answer: D
Topic: Chapter 1.1 Why Study Financial Markets
Question Status: Previous Edition
2) Financial market activities affect
A) personal wealth.
B) spending decisions by individuals and business firms.
C) the economy's location in the business cycle.
D) all of the above.
Answer: D
Topic: Chapter 1.1 Why Study Financial Markets
Question Status: Previous Edition
3) Markets in which funds are transferred from those who have excess funds available to those
who have a shortage of available funds are called
A) commodity markets.
B) funds markets.
C) derivative exchange markets.
D) financial markets.
Answer: D
Topic: Chapter 1.1 Why Study Financial Markets
Question Status: Previous Edition
4) The price paid for the rental of borrowed funds (usually expressed as a percentage of the
rental of $100 per year) is commonly referred to as the
A) inflation rate.
B) exchange rate.
C) interest rate.
D) aggregate price level.
Answer: C
Topic: Chapter 1.1 Why Study Financial Markets
Question Status: Previous Edition
1
Copyright © 2015 Pearson Education, Inc.
