Test Bank for Economics of Money, Banking, and Financial Markets, 13th Edition by Frederic S Mishkin

TEST BANK FOR THE ECONOMICS OF
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MONEY, BANKING AND FINANCIAL
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ee MARKETS, 13TH EDITION BY MISHKIN
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,Contents
Chapter 1
eeK Why Study Money, Banking, and Financial Markets? ...................................... 1
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Chapter 2
eeK An Overview of the Financial System ................................................................. 20
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Chapter 3
eeK What Is Money?........................................................................................................... 43
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Chapter 4
eeK Understanding Interest Rates .................................................................................... 60
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Chapter 5
eeK The Behavior of Interest Rates ............................................................................... 78
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Chapter 6
eeK The Risk and Term Structure of Interest Rates .............................................. 111
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Chapter 7
eeK The Stock Market, the Theory of Rational Expectations,
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and the Efficient Market Hypothesis................................................................... 133
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Chapter 8
eeK An Economic Analysis of Financial Structure .................................................. 150
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Chapter 9
eeK Financial Crises and the Subprime Meltdown ................................................. 169
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Chapter 10
eeK Banking and the Management of Financial Institutions................................ 181
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Chapter 11
eeK Economic Analysis of Financial Regulation ....................................................... 208
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Chapter 12
eeK Banking Industry: Structure and Competition .................................................. 229
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Chapter 13
eeK Central Banks and the Federal Reserve System.............................................. 253
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Chapter 14
eeK The Money Supply Process .................................................................................... 274
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Chapter 15
eeK Tools for Monetary Policy ...................................................................................... 319
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Chapter 16
eeK The Conduct of Monetary Policy: Strategy and Tactics ............................... 343
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Chapter 17
eeK The Foreign Exchange Market ............................................................................... 363
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Chapter 18
eeK The International Financial System ...................................................................... 389
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Chapter 19
eeK The Demand for Money ......................................................................................... 418
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Chapter 20
eeK The ISLM Model ....................................................................................................... 440
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Chapter 21
eeK Monetary and Fiscal Policy in the ISLM Model ............................................ 466
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Chapter 22
eeK Aggregate Demand and Supply Analysis .......................................................... 493
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Chapter 23
eeK Transmission Mechanisms of Monetary Policy: The Evidence..................... 511
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Chapter 24
eeK Money and Inflation ................................................................................................. 529
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Chapter 25
eeK Rational Expectations: Implications for Policy .................................................. 549
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,
, Chapter 1 eeK




Why Study Money, Banking, and Financial Markets?
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1.1 Why Study Financial Markets?
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1) Financial K markets K promote K economic K efficiency K by
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A) channeling K funds K from K investors K to K savers. ee ee ee ee ee



B) creating K inflation. ee



C) channeling K funds K from K savers K to K investors. ee ee ee ee ee



D) reducing
ee K investment.KAnswer: e




e e K C
Ques KStatus: ee e e K Previous KEdition ee




2) Financial K markets K promote K greater K economic K efficiency K by K channeling K funds K from to
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K ee .
A) investors; K savers ee



B) borrowers; K savers e e



C) savers; K borrowers e e



D) savers;
eeK lendersKAnswer: e




e e K C
Ques KStatus: ee e e K Previous KEdition ee




3) Well-functioning K financial ee ee K markets ee K promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Answer: ee K D
Ques KStatus: ee e e K Previous KEdition ee




4) A Kkey Kfactor Kin Kproducing Khigh Keconomic Kgrowth Kis
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A) eliminating K foreign K trade. ee ee



B) well-functioning K financial K markets. ee ee



C) high Kinterest Krates. ee ee



D) stock K market ee




eeK volatility.KAnswer: e e e K B
Ques KStatus: ee e e K New

5) Markets K in K which K funds K are K transferred K from K those K who K have K excess K funds
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K available K to K thoseK
ee who Khave Ka Kshortage Kof Kavailable Kfunds Kare Kcalled
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A) commodity K markets. ee



B) fund-available K markets. ee



C) derivative K exchange K markets. ee ee



D) financial
K markets.
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Answer: ee K D
Ques KStatus: ee e e K Previous KEdition ee