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Test Bank Economics of Money, Banking and Financial Markets, 13th Edition by Frederic Mishkin Complete Chapters| A+ Graded Quiz

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Test Bank Economics of Money, Banking and Financial Markets, 13th Edition by Frederic Mishkin Complete Chapters| A+ Graded Quiz

Institution
Economics Of Money, Banking And Financia
Course
Economics of Money, Banking and Financia

Content preview

Test Bank
Economics of Money, Banking and
Financial Markets, 13th Edition
by Frederic Mishkin
Complete Chapters| A+ Graded Quiz




19|9P9a9g9e

, Chapter91

Why9Study9Money,9Banking,9and9Financial9Markets?
1.1 Why9Study9Financial9Markets?

1) Financial9markets9promote9economic9efficiency9by

A) channeling9funds9from9investors9to9savers.

B) creating9inflation.

C) channeling9funds9from9savers9to9investors.

D) reducing9investment.

Answer:9C

Question9Status:9Revised



2) Financial9markets9promote9greater9economic9efficiency9by9channeling9funds9from to

A) investors;9savers

B) borrowers;9savers

C) savers;9borrowers

D) savers;9lenders

9Answer:9C

Question9Status:9New



3) Well-functioning9financial9markets9promote

A) inflation.

B) deflation.

C) unemployment.

D) growth.

Answer:9D

Question9Status:9Revised


29|9P9a9g9e

,4) Markets9in9which9funds9are9transferred9from9those9who9have9excess9funds9available9to9those9who9hav
e9a9shortage9of9available9funds9are9called

A) commodity9markets.

B) fund-available9markets.

C) derivative9exchange9markets.

D) financial9markets.

Answer:9D

Question9Status:9Previous9Edition



5) markets9transfer9funds9from9people9who9have9an9excess9of9available9funds9to9people9who9have9
a9shortage.

A) Commodity

B) Fund-available

C) Financial

D) Derivative9exchange

9Answer:9C

Question9Status:9New



6) Poorly9performing9financial9markets9can9be9the9cause9of

A) wealth.

B) poverty.

C) financial9stability.

D) financial9expansion.

Answer:9B

Question9Status:9Revised




39|9P9a9g9e

, 7) The9bond9markets9are9important9because9they9are

A) easily9the9most9widely9followed9financial9markets9in9the9United9States.

B) the9markets9where9foreign9exchange9rates9are9determined.

C) the9markets9where9interest9rates9are9determined.

D) the9markets9where9all9borrowers9get9their9funds.

Answer:9C

Question9Status:9Revised



8) The9price9paid9for9the9rental9of9borrowed9funds9(usually9expressed9as9a9percentage9of9the9rental9of9$10
09per9year)9is9commonly9referred9to9as9the

A) inflation9rate.

B) exchange9rate.

C) interest9rate.

D) aggregate9price9level.

Answer:9C

Question9Status:9Previous9Edition



9) Compared9to9interest9rates9on9long-term9U.S.9government9bonds,9interest9rates9on9three-
month9Treasury9bills9fluctuate and9are on9average.

A) more;9lower

B) less;9lower

C) more;9higher

D) less;9higher

9Answer:9A

Question9Status:9Previous9Edition




49|9P9a9g9e

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Institution
Economics of Money, Banking and Financia
Course
Economics of Money, Banking and Financia

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