Test Bank For Money, Banking and Financial Markets, 17th Edition All Chapters - 9781260226782.pdf

Chươngf1

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Financialfmarketsfpromotefeconomicfefficiencyfby

A)fchannelingffundsffromfinvestorsftofsavers.

B)fcreatingfinflation.

C)fchannelingffundsffromfsaversftofinvestors.

D)freducingfinvestment.
Answer:fC
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Financialfmarketsfpromotefgreaterfeconomicfefficiencyfbyfchannelingffundsffromf________fto
f________.



A)finvestors;fsavers

B)fborrowers;fsavers

C)fsavers;fborrowers

D)fsavers;flenders
Answer:fC
3
Well-functioningffinancialfmarketsfpromote

A)finflation.

B)fdeflation.

C)funemployment.

D)fgrowth.
Answer:fD
4
Afkeyffactorfinfproducingfhighfeconomicfgrowthfis

A)feliminatingfforeignftrade.

B)fwell-functioningffinancialfmarkets.

C)fhighfinterestfrates.

D)fstockfmarketfvolatility.
Answer:fB

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Marketsfinfwhichffundsfareftransferredffromfthosefwhofhavefexcessffundsfavailableftofthosef
whofhavefafshortagefoffavailableffundsfarefcalled

A)fcommodityfmarkets.

B)ffund-availablefmarkets.

C)fderivativefexchangefmarkets.

D)ffinancialfmarkets.
Answer:fD
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________fmarketsftransferffundsffromfpeoplefwhofhavefanfexcessfoffavailableffundsftofpeoplef
whofhavefafshortage.

A)fCommodity

B)fFund-available

C)fFinancial

D)fDerivativefexchange
Answer:fC
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Poorlyfperformingffinancialfmarketsfcanfbefthefcausefof

A)fwealth.

B)fpoverty.

C)ffinancialfstability.

D)ffinancialfexpansion.
Answer:fB
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Thefbondfmarketsfarefimportantfbecauseftheyfare

A)feasilyfthefmostfwidelyffollowedffinancialfmarketsfinfthefUnitedfStates.

B)fthefmarketsfwherefforeignfexchangefratesfarefdetermined.

C)fthefmarketsfwherefinterestfratesfarefdetermined.

D)fthefmarketsfwherefallfborrowersfgetftheirffunds.
Answer:fC
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,Thefpricefpaidfforfthefrentalfoffborrowedffundsf(usuallyfexpressedfasfafpercentagefoffthefrent
alfoff$100fperfyear)fisfcommonlyfreferredftofasfthe

A)finflationfrate.

B)fexchangefrate.

C)finterestfrate.

D)faggregatefpriceflevel.
Answer:fC
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Comparedftofinterestfratesfonflong-termfU.S.fgovernmentfbonds,finterestfratesfonfthree-
monthfTreasuryfbillsffluctuatef________fandfaref________fonfaverage.

A)fmore;flower

B)fless;flower

C)fmore;fhigher

D)fless;fhigher
Answer:fA
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ThefinterestfratefonfBaafcorporatefbondsfisf________,fonfaverage,fthanfinterestfratesfonfTreasu
ries,fandfthefspreadfbetweenfthesefratesfbecamef________finfthef1970s.

A)flower;fsmaller

B)flower;flarger

C)fhigher;fsmaller

D)fhigher;flarger
Answer:fD
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Everythingfelsefheldfconstant,fafdeclinefinfinterestfratesfwillfcausefspendingfonfhousingfto

A)ffall.

B)fremainfunchanged.

C)feitherfrise,ffall,forfremainfthefsame.

D)frise.
Answer:fD
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, Highfinterestfratesfmightf________fpurchasingfafhouseforfcarfbutfatfthefsameftimefhighfinteres
tfratesfmightf________fsaving.

A)fdiscourage;fencourage

B)fdiscourage;fdiscourage

C)fencourage;fencourage

D)fencourage;fdiscourage
Answer:fA
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Anfincreasefinfinterestfratesfmightf________fsavingfbecausefmorefcanfbefearnedfinfinterestfinc
ome.

A)fencourage

B)fdiscourage

C)fdisallow

D)finvalidate
Answer:fA
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Everythingfelsefheldfconstant,fanfincreasefinfinterestfratesfonfstudentfloans

A)fincreasesfthefcostfoffafcollegefeducation.

B)freducesfthefcostfoffafcollegefeducation.

C)fhasfnofeffectfonfeducationalfcosts.

D)fincreasesfcostsfforfstudentsfwithfnofloans.
Answer:fA
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Highfinterestfratesfmightfcausefafcorporationftof________fbuildingfafnewfplantfthatfwouldfpro
videfmorefjobs.

A)fcomplete

B)fconsider

C)fpostpone

D)fcontemplate
Answer:fC
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