Test Bank
The Economics Of Money Banking And Financial
Markets
By Frederic Mishkin
13th Edition
,Chapter 1
Why Study Money, Banking, And Financial Markets?
1.1 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: Revised
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: New
3) Well-Functioning Financial Markets Promote
A) Inflation.
B) Deflation.
C) Unemployment.
D) Growth.
Answer: D
Ques Status: Revised
4) 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
Ques Status: Previous Edition
,
, 5) 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: New
6) Poorly Performing Financial Markets Can Be The Cause Of
A) Wealth.
B) Poverty.
C) Financial Stability.
D) Financial Expansion.
Answer: B
Ques Status: Revised
7) 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: Revised
8) 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
The Economics Of Money Banking And Financial
Markets
By Frederic Mishkin
13th Edition
,Chapter 1
Why Study Money, Banking, And Financial Markets?
1.1 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: Revised
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: New
3) Well-Functioning Financial Markets Promote
A) Inflation.
B) Deflation.
C) Unemployment.
D) Growth.
Answer: D
Ques Status: Revised
4) 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
Ques Status: Previous Edition
,
, 5) 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: New
6) Poorly Performing Financial Markets Can Be The Cause Of
A) Wealth.
B) Poverty.
C) Financial Stability.
D) Financial Expansion.
Answer: B
Ques Status: Revised
7) 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: Revised
8) 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
