TEST BANK FOR THE ECONOMICS OF
v v v v v
v MONEY, BANKING AND FINANCIAL
v v v
v MARKETS, 13TH EDITION BYMISHKIN
v v v v
,Contents
Chapter 1
v Why Study Money, Banking, and Financial Markets? ........................................ 1
v v v v v v
Chapter 2
v An Overview of the Financial System .................................................................. 20
v v v v v
Chapter 3
v What Is Money? ........................................................................................................... 43
v v
Chapter 4
v Understanding Interest Rates .................................................................................... 60
v v
Chapter 5
v The Behavior of Interest Rates ................................................................................ 78
v v v v
Chapter 6
v The Risk and Term Structure of Interest Rates................................................ 111
v v v v v v v
Chapter 7
v The Stock Market, the Theory of Rational Expectations,
v v v v v v v
and the Efficient Market Hypothesis .................................................................... 133
v v v v
Chapter 8
v An Economic Analysis of Financial Structure ................................................... 150
v v v v v
Chapter 9
v Financial Crises and the Subprime Meltdown .................................................. 169
v v v v v
Chapter 10
v Banking and the Management of Financial Institutions ................................. 181
v v v v v v
Chapter 11
v Economic Analysis of Financial Regulation ........................................................ 208
v v v v
Chapter 12
v Banking Industry: Structure and Competition ................................................... 229
v v v v
Chapter 13
v Central Banks and the Federal Reserve System ............................................... 253
v v v v v v
Chapter 14
v The Money Supply Process ..................................................................................... 274
v v v
Chapter 15
v Tools for Monetary Policy ....................................................................................... 319
v v v
Chapter 16
v The Conduct of Monetary Policy: Strategy and Tactics ................................. 343
v v v v v v v
Chapter 17
v The Foreign Exchange Market ................................................................................ 363
v v v
Chapter 18
v The International Financial System ....................................................................... 389
v v v
Chapter 19
v The Demand for Money .......................................................................................... 418
v v v
Chapter 20
v The ISLM Model ........................................................................................................ 440
v v
Chapter 21
v Monetary and Fiscal Policy in the ISLM Model ............................................. 466
v v v v v v v
Chapter 22
v Aggregate Demand and Supply Analysis ........................................................... 493
v v v v
Chapter 23
v Transmission Mechanisms of Monetary Policy: The Evidence ...................... 511
v v v v v v
Chapter 24
v Money and Inflation .................................................................................................. 529
v v
Chapter 25
v Rational Expectations: Implications for Policy ................................................... 549
v v v v
,
, Chapter1 v
Why Study Money, Banking, and Financial Markets?
v v v v v v
1.1 Why Study Financial Markets?
v v v
1) Financial v markets v promote v economic v efficiency v by
A) channeling v funds v from v investors v to v savers.
B) creating v inflation.
C) channeling v funds v from v savers v to v investors.
D) reducing
v investment.vAnswer: v C
Ques v Status: v Previous v Edition
2) Financial v markets v promote v greater v economic v efficiency v by v channeling v funds v from to
v .
A) investors; v savers
B) borrowers; v v vsavers
C) savers; v borrowers
D) savers;
v lendersAnswer: v C
Ques v Status: v Previous v Edition
3) Well-functioning v financial v markets v promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Answer: v D
v
Ques v Status: v Previous v Edition
4) A v key v factor v in v producing v high v economic v growth v is
A) eliminating v foreign v trade.
B) well-functioning v financial v markets.
C) high v interest v rates.
D) stock v market
v volatility.Answer: v B
Ques v Status: v New
5) Markets vin v which v funds v are v transferred v from v those v who v have v excess v funds
v availablev
to v thosevwho v have v a v shortage v of v available v funds v are v called
A) commodity v markets.
B) fund-available v markets.
C) derivative v exchange v markets.
D) financial
markets.
v
Answer: v D
Ques v Status: v Previous v Edition
v v v v v
v MONEY, BANKING AND FINANCIAL
v v v
v MARKETS, 13TH EDITION BYMISHKIN
v v v v
,Contents
Chapter 1
v Why Study Money, Banking, and Financial Markets? ........................................ 1
v v v v v v
Chapter 2
v An Overview of the Financial System .................................................................. 20
v v v v v
Chapter 3
v What Is Money? ........................................................................................................... 43
v v
Chapter 4
v Understanding Interest Rates .................................................................................... 60
v v
Chapter 5
v The Behavior of Interest Rates ................................................................................ 78
v v v v
Chapter 6
v The Risk and Term Structure of Interest Rates................................................ 111
v v v v v v v
Chapter 7
v The Stock Market, the Theory of Rational Expectations,
v v v v v v v
and the Efficient Market Hypothesis .................................................................... 133
v v v v
Chapter 8
v An Economic Analysis of Financial Structure ................................................... 150
v v v v v
Chapter 9
v Financial Crises and the Subprime Meltdown .................................................. 169
v v v v v
Chapter 10
v Banking and the Management of Financial Institutions ................................. 181
v v v v v v
Chapter 11
v Economic Analysis of Financial Regulation ........................................................ 208
v v v v
Chapter 12
v Banking Industry: Structure and Competition ................................................... 229
v v v v
Chapter 13
v Central Banks and the Federal Reserve System ............................................... 253
v v v v v v
Chapter 14
v The Money Supply Process ..................................................................................... 274
v v v
Chapter 15
v Tools for Monetary Policy ....................................................................................... 319
v v v
Chapter 16
v The Conduct of Monetary Policy: Strategy and Tactics ................................. 343
v v v v v v v
Chapter 17
v The Foreign Exchange Market ................................................................................ 363
v v v
Chapter 18
v The International Financial System ....................................................................... 389
v v v
Chapter 19
v The Demand for Money .......................................................................................... 418
v v v
Chapter 20
v The ISLM Model ........................................................................................................ 440
v v
Chapter 21
v Monetary and Fiscal Policy in the ISLM Model ............................................. 466
v v v v v v v
Chapter 22
v Aggregate Demand and Supply Analysis ........................................................... 493
v v v v
Chapter 23
v Transmission Mechanisms of Monetary Policy: The Evidence ...................... 511
v v v v v v
Chapter 24
v Money and Inflation .................................................................................................. 529
v v
Chapter 25
v Rational Expectations: Implications for Policy ................................................... 549
v v v v
,
, Chapter1 v
Why Study Money, Banking, and Financial Markets?
v v v v v v
1.1 Why Study Financial Markets?
v v v
1) Financial v markets v promote v economic v efficiency v by
A) channeling v funds v from v investors v to v savers.
B) creating v inflation.
C) channeling v funds v from v savers v to v investors.
D) reducing
v investment.vAnswer: v C
Ques v Status: v Previous v Edition
2) Financial v markets v promote v greater v economic v efficiency v by v channeling v funds v from to
v .
A) investors; v savers
B) borrowers; v v vsavers
C) savers; v borrowers
D) savers;
v lendersAnswer: v C
Ques v Status: v Previous v Edition
3) Well-functioning v financial v markets v promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Answer: v D
v
Ques v Status: v Previous v Edition
4) A v key v factor v in v producing v high v economic v growth v is
A) eliminating v foreign v trade.
B) well-functioning v financial v markets.
C) high v interest v rates.
D) stock v market
v volatility.Answer: v B
Ques v Status: v New
5) Markets vin v which v funds v are v transferred v from v those v who v have v excess v funds
v availablev
to v thosevwho v have v a v shortage v of v available v funds v are v called
A) commodity v markets.
B) fund-available v markets.
C) derivative v exchange v markets.
D) financial
markets.
v
Answer: v D
Ques v Status: v Previous v Edition