Test Bank to Accompany The economics of Money Banking and Financial Markets, 9th Edition by Frederic S. Mishkin | 9780321454225 | All Chapters 1-25 Already graded A+ |LATEST

Chapter 1 ss




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




B) creating inflation. ss




C) channeling funds from savers to investors. ss ss ss ss ss




D) reducing investment. ss




Answer: s s C
Ques Status: Revised
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2) Financial markets promote greater economic efficiency by channeling funds from
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.
A) investors; savers ss




B) borrowers; savers ss




C) savers; borrowers ss




D) savers; lenders ss




Answer: s s C
Ques Status: New
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3) Well-functioning financial markets promote s s s s s s




A) inflation.
B) deflation.
C) unemployment.
D) growth.

Answer: s s D
Ques Status: Revised
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4) Markets in which funds are transferred from those who have excess funds available to
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those who have a shortage of available funds are called
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, A) commodity markets. ss




B) fund-available markets. ss




C) derivative exchange markets.
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D) financial markets.
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Answer: s s D
Ques Status: Previous Edition
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,
, 2 Mishkin · Economics of Money, Banking, and Financial Markets, Alternate
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Edition


5) markets transfer funds from people who have an excess of available funds to
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ss people who have a shortage.
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A) Commodity
B) Fund-available
C) Financial
D) Derivative exchange ss




Answer: s s C
Ques Status: New
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6) Poorly performing financial markets can be the cause of
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A) wealth.
B) poverty.
C) financial stability. ss




D) financial expansion. ss




Answer: s s B
Ques Status: Revised
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7) The bond markets are important because they are
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A) easily the most widely followed financial markets in the United States.
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B) the markets where foreign exchange rates are determined.
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C) the markets where interest rates are determined.
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D) the markets where all borrowers get their funds.
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Answer: s s C
Ques Status: Revised
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8) The price paid for the rental of borrowed funds (usually expressed as a percentage of
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the rental of $100 per year) is commonly referred to as the
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A) inflation rate. ss




B) exchange rate. ss




C) interest rate. ss




D) aggregate price level. ss ss




Answer: s s C
Ques Status: Previous Edition
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