Economics of Money, Banking and
Financial Markets, 13th Edition
by Frederic Mishkin
Complete Chapters| A+ Graded Quiz
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, Chapter81
Why8Study8Money,8Banking,8and8Financial8Markets?
1.1 Why8Study8Financial8Markets?
1) Financial8markets8promote8economic8efficiency8by
A) channeling8funds8from8investors8to8savers.
B) creating8inflation.
C) channeling8funds8from8savers8to8investors.
D) reducing8investment.
Answer:8C
Question8Status:8Revised
2) Financial8markets8promote8greater8economic8efficiency8by8channeling8funds8from to
A) investors;8savers
B) borrowers;8savers
C) savers;8borrowers
D) savers;8lenders
8Answer:8C
Question8Status:8New
3) Well-functioning8financial8markets8promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Answer:8D
Question8Status:8Revised
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,4) Markets8in8which8funds8are8transferred8from8those8who8have8excess8funds8available8to8those8who8hav
e8a8shortage8of8available8funds8are8called
A) commodity8markets.
B) fund-available8markets.
C) derivative8exchange8markets.
D) financial8markets.
Answer:8D
Question8Status:8Previous8Edition
5) markets8transfer8funds8from8people8who8have8an8excess8of8available8funds8to8people8who8have8
a8shortage.
A) Commodity
B) Fund-available
C) Financial
D) Derivative8exchange
8Answer:8C
Question8Status:8New
6) Poorly8performing8financial8markets8can8be8the8cause8of
A) wealth.
B) poverty.
C) financial8stability.
D) financial8expansion.
Answer:8B
Question8Status:8Revised
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, 7) The8bond8markets8are8important8because8they8are
A) easily8the8most8widely8followed8financial8markets8in8the8United8States.
B) the8markets8where8foreign8exchange8rates8are8determined.
C) the8markets8where8interest8rates8are8determined.
D) the8markets8where8all8borrowers8get8their8funds.
Answer:8C
Question8Status:8Revised
8) The8price8paid8for8the8rental8of8borrowed8funds8(usually8expressed8as8a8percentage8of8the8rental8of8$10
08per8year)8is8commonly8referred8to8as8the
A) inflation8rate.
B) exchange8rate.
C) interest8rate.
D) aggregate8price8level.
Answer:8C
Question8Status:8Previous8Edition
9) Compared8to8interest8rates8on8long-term8U.S.8government8bonds,8interest8rates8on8three-
month8Treasury8bills8fluctuate and8are on8average.
A) more;8lower
B) less;8lower
C) more;8higher
D) less;8higher
8Answer:8A
Question8Status:8Previous8Edition
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