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TEST BANK
M
PR
The Economics of Money, Banking and Financial Markets 13th
Edition
ES
by Frederic Mishkin
SI
VE
G
INSTANT DOWNLOAD
R
COMPLETE CHAPTERS
AD
COMPLETE ANSWERS
ES
ytrew
, jhgfdsa
All Chapters All Answers
The Economics of Money, Banking and Financial Markets, 13e (Mishkin)
Chapter 1 Why Study Money, Banking, and Financial Markets?
M
1.1 Why Study Financial Markets?
1) Financial markets promote economic efficiency by
A) channeling funds from investors to savers.
PR
B) creating inflation.
C) channeling funds from savers to investors.
D) reducing investment.
Answer: C
Question Status: Previous Edition
AACSB: Reflective Thinking
ES
2) Financial markets promote greater economic efficiency by channeling funds from
to .
A) investors; savers
B) borrowers; savers
C) savers; borrowers
SI
D) savers; lenders
Answer: C
Question Status: Previous Edition
AACSB: Reflective Thinking
VE
3) Well-functioning financial markets promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Answer: D
G
Question Status: Previous Edition
AACSB: Reflective Thinking
4) A key factor in producing high economic growth is
R
A) eliminating foreign trade.
B) well-functioning financial markets.
C) high interest rates.
AD
D) stock market volatility.
Answer: B
Question Status: Previous Edition
AACSB: Reflective Thinking
All Chapters Included
ES
All Chapters Included
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, jhgfdsa
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.
M
B) fund-available markets.
C) derivative exchange markets.
D) financial markets.
Answer: D
PR
Question 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
ES
B) Fund-available
C) Financial
D) Derivative exchange
Answer: C
Question Status: Previous Edition
AACSB: Application of Knowledge
SI
7) Poorly performing financial markets can be the cause of
A) wealth.
B) poverty.
C) financial stability.
VE
D) financial expansion.
Answer: B
Question Status: Previous Edition
AACSB: Reflective Thinking
8) The bond markets are important because they are
G
A) easily the most widely followed financial markets in the United States.
B) the markets where foreign exchange rates are determined.
C) the markets where interest rates are determined.
R
D) the markets where all borrowers get their funds.
Answer: C
Question Status: Previous Edition
AACSB: Reflective Thinking
AD
9) The price paid for the rental of borrowed funds (usually expressed as a percentage of the
rental of $100 per year) is commonly referred to as the
A) inflation rate.
B) exchange rate.
C) interest rate.
ES
D) aggregate price level.
Answer: C
Question Status: Previous Edition
AACSB: Application of Knowledge
ytrew
, jhgfdsa
10) Compared to interest rates on long-term U.S. government bonds, interest rates on three-
month Treasury bills fluctuate and are on average.
M
A) more; lower
B) less; lower
C) more; higher
D) less; higher
PR
Answer: A
Question Status: Previous Edition
AACSB: Reflective Thinking
11) The interest rate on Baa corporate bonds is , on average, than interest rates on
Treasuries, and the spread between these rates became in the 1970s.
ES
A) lower; smaller
B) lower; larger
C) higher; smaller
D) higher; larger
Answer: D
Question Status: Previous Edition
SI
AACSB: Reflective Thinking
12) Everything else held constant, a decline in interest rates will cause spending on housing to
A) fall.
B) remain unchanged.
VE
C) either rise, fall, or remain the same.
D) rise.
Answer: D
Question Status: Previous Edition
AACSB: Analytical Thinking
G
13) High interest rates might purchasing a house or car but at the same time high
interest rates might saving.
A) discourage; encourage
R
B) discourage; discourage
C) encourage; encourage
D) encourage; discourage
Answer: A
AD
Question Status: Previous Edition
AACSB: Analytical Thinking
ES
ytrew
TEST BANK
M
PR
The Economics of Money, Banking and Financial Markets 13th
Edition
ES
by Frederic Mishkin
SI
VE
G
INSTANT DOWNLOAD
R
COMPLETE CHAPTERS
AD
COMPLETE ANSWERS
ES
ytrew
, jhgfdsa
All Chapters All Answers
The Economics of Money, Banking and Financial Markets, 13e (Mishkin)
Chapter 1 Why Study Money, Banking, and Financial Markets?
M
1.1 Why Study Financial Markets?
1) Financial markets promote economic efficiency by
A) channeling funds from investors to savers.
PR
B) creating inflation.
C) channeling funds from savers to investors.
D) reducing investment.
Answer: C
Question Status: Previous Edition
AACSB: Reflective Thinking
ES
2) Financial markets promote greater economic efficiency by channeling funds from
to .
A) investors; savers
B) borrowers; savers
C) savers; borrowers
SI
D) savers; lenders
Answer: C
Question Status: Previous Edition
AACSB: Reflective Thinking
VE
3) Well-functioning financial markets promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Answer: D
G
Question Status: Previous Edition
AACSB: Reflective Thinking
4) A key factor in producing high economic growth is
R
A) eliminating foreign trade.
B) well-functioning financial markets.
C) high interest rates.
AD
D) stock market volatility.
Answer: B
Question Status: Previous Edition
AACSB: Reflective Thinking
All Chapters Included
ES
All Chapters Included
ytrew
, jhgfdsa
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.
M
B) fund-available markets.
C) derivative exchange markets.
D) financial markets.
Answer: D
PR
Question 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
ES
B) Fund-available
C) Financial
D) Derivative exchange
Answer: C
Question Status: Previous Edition
AACSB: Application of Knowledge
SI
7) Poorly performing financial markets can be the cause of
A) wealth.
B) poverty.
C) financial stability.
VE
D) financial expansion.
Answer: B
Question Status: Previous Edition
AACSB: Reflective Thinking
8) The bond markets are important because they are
G
A) easily the most widely followed financial markets in the United States.
B) the markets where foreign exchange rates are determined.
C) the markets where interest rates are determined.
R
D) the markets where all borrowers get their funds.
Answer: C
Question Status: Previous Edition
AACSB: Reflective Thinking
AD
9) The price paid for the rental of borrowed funds (usually expressed as a percentage of the
rental of $100 per year) is commonly referred to as the
A) inflation rate.
B) exchange rate.
C) interest rate.
ES
D) aggregate price level.
Answer: C
Question Status: Previous Edition
AACSB: Application of Knowledge
ytrew
, jhgfdsa
10) Compared to interest rates on long-term U.S. government bonds, interest rates on three-
month Treasury bills fluctuate and are on average.
M
A) more; lower
B) less; lower
C) more; higher
D) less; higher
PR
Answer: A
Question Status: Previous Edition
AACSB: Reflective Thinking
11) The interest rate on Baa corporate bonds is , on average, than interest rates on
Treasuries, and the spread between these rates became in the 1970s.
ES
A) lower; smaller
B) lower; larger
C) higher; smaller
D) higher; larger
Answer: D
Question Status: Previous Edition
SI
AACSB: Reflective Thinking
12) Everything else held constant, a decline in interest rates will cause spending on housing to
A) fall.
B) remain unchanged.
VE
C) either rise, fall, or remain the same.
D) rise.
Answer: D
Question Status: Previous Edition
AACSB: Analytical Thinking
G
13) High interest rates might purchasing a house or car but at the same time high
interest rates might saving.
A) discourage; encourage
R
B) discourage; discourage
C) encourage; encourage
D) encourage; discourage
Answer: A
AD
Question Status: Previous Edition
AACSB: Analytical Thinking
ES
ytrew
