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

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a69l69Markets6913th69Edition69Mishkin


The6 9 Economics6 9 of6 9 Money,6 9 Banking6 9 and6 9 Financial6 9 Markets,6 9
13e6 9 (69Mishkin)6 9 Chapter6 9 1
Why6 9 Study6 9 Money,6 9 Banking,6 9 and6 9 Financial6 9 Markets
?

1.1 Why6 9 Study6 9 Financial6 9 Markets?

1) Financial6 9 markets6 9 promote6 9 economic6 9 efficiency6 9 by
A) channeling6 9 funds6 9 from6 9 investors6 9 to6 9 savers.
B) creating6 9 inflation.
C) channeling6 9 funds6 9 from6 9 savers6 9 to6 9 investors.
D) reducing6 9 investmen
t.6 9 Answer: C
Question6 9 Status:
Previous6 9 Edition6 9 A69ACS
B: Reflective6 9 Thinking

2) Financial6 9 markets6 9 promote6 9 greater6 9 economic6 9 efficiency6 9 by6 9 channeling6 9 funds6
9 from
6 9 to6 9
6 9 6 9 .
A) investors;6 9 savers
B) borrowers;6 9 savers
C) savers;6 9 borrowers
D) savers;6 9 lend
er69s6 9 Answer:
C
Question6 9 Status:
Previous6 9 Edition6 9 A69ACS
B: Reflective6 9 Thinking

3) Well-functioning6 9 financial6 9 markets6 9 promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
69Answer:
D
Question6 9 Status:
Previous6 9 Edition6 9 A69ACS
B: Reflective6 9 Thinking

4) A6 9 key6 9 factor6 9 in6 9 producing6 9 high6 9 economic6 9 growth6 9 is
A) eliminating6 9 foreign6 9 trade.
B) well-functioning6 9 financial6 9 markets.
C) high6 9 interest6 9 rates.
D) stock6 9 market6 9 vola
1
Copyright6 9 ©6 9 20226 9 Pearson6
9 Education
,6 9 6 9 Inc.

, tilit69y.
Answer: B
Question6 9 Status:
Previous6 9 Edition6 9 A69ACS
B: Reflective6 9 Thinking




2
Copyright6 9 ©6 9 20226 9 Pearson6
9 Education
,6 9 6 9 Inc.

, DOWNLOAD69THE69Test69Bank69for69Economics69of69Money69Banking69and69Financi
a69l69Markets6913th69Edition69Mishkin


5) Markets6 9 in6 9 which6 9 funds6 9 are6 9 transferred6 9 from6 9 those6 9 who6 9 have6 9 ex
cess6 9 funds6 9 avail69able6 9 to6 9 those6 9 who6 9 have6 9 a6 9 shortage6 9 of6 9 availabl
e6 9 funds6 9 are6 9 called
A) commodity6 9 markets.
B) fund-available6 9 markets.
C) derivative6 9 exchange6 9 markets.
D) financial6 9 mark
et69s.
Answer: D
Question6 9 Status:
Previous6 9 Edition6 9 A69ACS
B: Application6 9 of6 9 Knowledge

6) markets6 9 transfer6 9 funds6 9 from6 9 people6 9 who6 9 have6 9 an6 9 excess6 9 of
6 9available6 9 fund6 9 s6 9 to6 9 people6 9 who6 9 have6 9 a6 9 shortage.
A) Commodity
B) Fund-available
C) Financial
D) Derivative6 9 exchan
g69e6 9 Answer: C
Question6 9 Status:
Previous6 9 Edition6 9 A69ACS
B: Application6 9 of6 9 Knowledge

7) Poorly6 9 performing6 9 financial6 9 markets6 9 can6 9 be6 9 the6 9 cause6 9 of
A) wealth.
B) poverty.
C) financial6 9 stability.
D) financial6 9 expansi
o69n.
Answer: B
Question6 9 Status:
Previous6 9 Edition6 9 A69ACS
B: Reflective6 9 Thinking

8) The6 9 bond6 9 markets6 9 are6 9 important6 9 because6 9 they6 9 are
A) easily6 9 the6 9 most6 9 widely6 9 followed6 9 financial6 9 markets6 9 in6 9 the6 9 United6 9 States.
B) the6 9 markets6 9 where6 9 foreign6 9 exchange6 9 rates6 9 are6 9 determined.
C) the6 9 markets6 9 where6 9 interest6 9 rates6 9 are6 9 determined.
D) the6 9 markets6 9 where6 9 all6 9 borrowers6 9 get6
9 their6 9 funds.6 9 Answer: C
Question6 9 Status:
Previous6 9 Edition6 9 A69ACS
B: Reflective6 9 Thinking

9) The6 9 price6 9 paid6 9 for6 9 the6 9 rental6 9 of6 9 borrowed6 9 funds6 9 (usually6 9 expr
essed6 9 as6 9 a6 9 perc69entage6 9 of6 9 the6 9 rental6 9 of6 9 $1006 9 per6 9 year)6 9 i
3
Copyright6 9 ©6 9 20226 9 Pearson6
9 Education
,6 9 6 9 Inc.