Test Bank MishkinThe Economics of Money, Banking, and
Financial Markets, 9th Edition
,Test Bank Mishkin The Economics of Money, Banking, and Financial Markets, 9th
Edition
Test Bank Mishkin The Economics of Money, Banking, and
Financial Markets, 9th 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.
2) Financial markets promote greater economic efficiency by
channeling funds from ________ to ________.
A) investors; savers
B) borrowers; savers
C) savers; borrowers
D) savers; lenders
3) Well-functioning financial markets promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
4) A key
factor in
producing
high
economic
growth is
A)
eliminatin
g foreign
trade.
B) well-functioning financial markets.
C) high interest rates.
D) stock market volatility.
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.
,Test Bank Mishkin The Economics of Money, Banking,
and Financial Markets, 9th Edition
lOMoAR cPSD| 22896205
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
7) Poorly
performing
financial
markets can be
the cause of A)
wealth.
B) poverty.
C) financial stability.
D) financial expansion.
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.
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.
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
11) The interest rate on Baa (medium quality) corporate
bonds is ________, on average, than other interest rates, and
the spread between it and other rates became ________ in
the 1970s.
A) lower; smaller
B) lower; larger
C) higher; smaller
D) higher; larger
pg. 3
, Test Bank Mishkin The Economics of Money, Banking,
and Financial Markets, 9th Edition
lOMoAR cPSD| 22896205
12) Everything else held constant, a decline in
interest rates will cause spending on housing to A)
fall.
B) remain unchanged.
C) either rise, fall, or remain the same.
D) rise.
13) High interest rates might ________ purchasing a
house or car but at the same time high interest rates might
________ saving.
A) discourage; encourage
B) discourage; discourage
C) encourage; encourage
D) encourage; discourage
14) An increase in interest rates might ________
saving because more can be earned in interest
income. A) encourage
B) discourage
C) disallow
D) invalidate
15) Everything else held constant, an increase in interest rates
on student loans
A) increases the cost of a college education.
B) reduces the cost of a college education.
C) has no effect on educational costs.
D) increases costs for students with no loans.
16) High interest rates might cause a corporation to
________ building a new plant that would provide
more jobs.
A) complete
B) consider
C) postpone
D) contemplate
17) The stock market is important because it is
A) where interest
rates are
determined. (ở bond
market) B) the most
widely followed
financial market in
the United States.
C) where foreign exchange rates are determined.
D) the market where most borrowers get their funds.
18) Stock prices are
A) relatively stable trending upward at a steady pace.
pg. 4
Financial Markets, 9th Edition
,Test Bank Mishkin The Economics of Money, Banking, and Financial Markets, 9th
Edition
Test Bank Mishkin The Economics of Money, Banking, and
Financial Markets, 9th 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.
2) Financial markets promote greater economic efficiency by
channeling funds from ________ to ________.
A) investors; savers
B) borrowers; savers
C) savers; borrowers
D) savers; lenders
3) Well-functioning financial markets promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
4) A key
factor in
producing
high
economic
growth is
A)
eliminatin
g foreign
trade.
B) well-functioning financial markets.
C) high interest rates.
D) stock market volatility.
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.
,Test Bank Mishkin The Economics of Money, Banking,
and Financial Markets, 9th Edition
lOMoAR cPSD| 22896205
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
7) Poorly
performing
financial
markets can be
the cause of A)
wealth.
B) poverty.
C) financial stability.
D) financial expansion.
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.
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.
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
11) The interest rate on Baa (medium quality) corporate
bonds is ________, on average, than other interest rates, and
the spread between it and other rates became ________ in
the 1970s.
A) lower; smaller
B) lower; larger
C) higher; smaller
D) higher; larger
pg. 3
, Test Bank Mishkin The Economics of Money, Banking,
and Financial Markets, 9th Edition
lOMoAR cPSD| 22896205
12) Everything else held constant, a decline in
interest rates will cause spending on housing to A)
fall.
B) remain unchanged.
C) either rise, fall, or remain the same.
D) rise.
13) High interest rates might ________ purchasing a
house or car but at the same time high interest rates might
________ saving.
A) discourage; encourage
B) discourage; discourage
C) encourage; encourage
D) encourage; discourage
14) An increase in interest rates might ________
saving because more can be earned in interest
income. A) encourage
B) discourage
C) disallow
D) invalidate
15) Everything else held constant, an increase in interest rates
on student loans
A) increases the cost of a college education.
B) reduces the cost of a college education.
C) has no effect on educational costs.
D) increases costs for students with no loans.
16) High interest rates might cause a corporation to
________ building a new plant that would provide
more jobs.
A) complete
B) consider
C) postpone
D) contemplate
17) The stock market is important because it is
A) where interest
rates are
determined. (ở bond
market) B) the most
widely followed
financial market in
the United States.
C) where foreign exchange rates are determined.
D) the market where most borrowers get their funds.
18) Stock prices are
A) relatively stable trending upward at a steady pace.
pg. 4
