TEST BANK FOR ECONOMICS OF MONEY BANKING AND FINANCIAL MARKETS 12TH EDITION BY MISHKIN WITH QUESTIONS AND WELL VERIFIED ANSWERS

TEST BANK FOR ECONOMICS OF MONEY
BANKING AND FINANCIAL MARKETS 12TH
EDITION BY MISHKIN WITH QUESTIONS
AND WELL VERIFIED ANSWERS

,
,Economics of Money, Banking, and Financial Markets,
12e (Mishkin) 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: Previous Edition
AACSB: Reflective Thinking

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: Previous Edition
AACSB: Reflective Thinking

3) Well-functioning financial markets
promote A) inflation.
B) deflation.
C) unemployment.

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, D) growth.
ANSWER: D
Ques Status: Previous Edition
AACSB: Reflective Thinking

4) A key factor in producing high
economic growth is A) eliminating foreign
trade.
B) well-functioning financial markets.
C) high interest rates.
D) stock market volatility. ANSWER: B
Ques Status: Previous Edition
AACSB: Reflective Thinking




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.
ANSWER: D
Ques Status: Previous Edition
AACSB: Application of Knowledge
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

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