TEST BANK FOR: The Economics of Money, Banking, and Financial Markets: 10th Edition by Frederic S. Mishkin Latest Version.

TEST BANK FOR:
The Economics of Money, Banking, and Financ
10th Edition
by Frederic S. Mishkin Latest Versio

,Table Of Contents
Chapter 1 ..................................................................................................................................................................................................
Why Study Money, Banking, And Financial Markets? .....................................................................................................................
Chapter 2 ..................................................................................................................................................................................................
An Overview Of The Financial System ................................................................................................................................................
Chapter 3 ..................................................................................................................................................................................................
What Is Money? ...................................................................................................................................................................................
3.1 Meaning Of Money...............................................................................................................................................................
Chapter 4 ..................................................................................................................................................................................................
Understanding Interest Rates ................................................................................................................................................................
Chapter 5 ..................................................................................................................................................................................................
The Behavior Of Interest Rates.............................................................................................................................................................

, Chapter 1
Why Study Money, Banking, And Financial Markets?


Why Study Financial Markets?

1) Financial Markets Promote Economic Efficiency By
A) Channeling Funds From Investors To Savers.
B) Creating Inflation.
C) Channeling Funds From Savers To Investors.
D) Reducing Investment.
Answer: C
Ques Status: Previous Edition

2) Financial Markets Promote Greater Economic Efficiency By Channeling Funds From To
.
A) Investors; Savers
B) Borrowers; Savers
C) Savers; Borrowers
D) Savers; Lenders
Answer: C
Ques Status: Previous Edition

3) Well-Functioning Financial Markets Promote
A) Inflation.
B) Deflation.
C) Unemployment.
D) Growth.
Answer: D
Ques Status: Previous Edition

4) A Key Factor In Producing High Economic Growth Is
A) Eliminating Foreign Trade.
B) Well-Functioning Financial Markets.
C) High Interest Rates.
D) Stock Market Volatility.
Answer: B
Ques Status: New

5) 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) Fund- Available Markets.
C) Derivative Exchange Markets.
D) Financial Markets.
Answer: D

, 6) Markets Transfer Funds From People Who Have An Excess Of Available Funds To
People Who Have A Shortage.
A) Commodity
B) Fund- Available
C) Financial
D) Derivative Exchange
Answer: C
Ques Status: Previous Edition

7) Poorly Performing Financial Markets Can Be The Cause Of
A) Wealth.
B) Poverty.
C) Financial Stability.
D) Financial Expansion.
Answer: B
Ques Status: Previous Edition

8) The Bond Markets Are Important Because They Are
A) Easily The Most Widely Followed Financial Markets In The United States.
B) The Markets Where Foreign Exchange Rates Are Determined.
C) The Markets Where Interest Rates Are Determined.
D) The Markets Where All Borrowers Get Their Funds.
Answer: C
Ques Status: Previous Edition

9) 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
Ques Status: Previous Edition

10) Compared To Interest Rates On Long-Term U.S. Government Bonds, Interest Rates On Three
-Month Treasury Bills Fluctuate And Are On Average.
A) More; Lower
B) Less; Lower
C) More; Higher
D) Less; Higher
Answer: A
Ques Status: Previous Edition