Exam (elaborations)
Test Bank for The Economics Of Money Banking And Financial Markets 13th Global Edition Frederic Mishkin
Test Bank for The Economics Of Money Banking And Financial Markets 13th Global Edition Frederic Mishkin
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
2 reviews
By: 9500smh • 6 months ago
By: singhharpreet11436 • 10 months ago
Content preview
1 Copyright © 2022 Pearson Education, Ltd. Test Bank For The Economics Of Money Banking And Financial Markets 13th Global Edition Frederic Mishkin Chapter 1-26 with web Chapters Chapter 1 Why Study Money, Banking, and Financial Markets? 1.1 Why Study Financial Markets? 1) Financial markets promote economic efficiency by A) channeling funds from investors to savers. B) creating inflation. C) channeling funds from savers to investors. D) reducing investment. Answer: C Question Status: Previous Edition AACSB: Reflective Thinking 2) Financial markets promote greater economic efficiency by channeling funds from to . A) investors; savers B) borrowers; savers C) savers; borrowers D) savers; lenders Answer: C Question Status: Previous Edition AACSB: Reflective Thinking 3) Well -functioning financial markets promote A) inflation. B) deflation. C) unemployment. D) growth. Answer: D Question Status: Previous Edition AACSB: Reflective Thinking 4) A key factor in producing high economic growth is A) eliminating foreign trade. B) well-functioning financial markets. C) high interest rates. D) stock market volatility. Answer: B Question Status: Previous Edition AACSB: Reflective Thinking 2 Copyright © 2022 Pearson Education, Ltd. 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. B) fund-available markets. C) derivative exchange markets. D) financial markets. Answer: D 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 B) Fund -available C) Financial D) Derivative exchange Answer: C Question Status: Previous Edition AACSB: Application of Knowledge 7) Poorly performing financial markets can be the cause of A) wealth. B) poverty. C) financial stability. D) financial expansion. Answer: B Question Status: Previous Edition AACSB: Reflective Thinking 8) The bond markets are important because they are 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. D) the markets where all borrower s get their funds. Answer: C Question Status: Previous Edition AACSB: Reflective Thinking 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. D) aggregate price level. Answer: C Question Status: Previous Edition AACSB: Application of Knowledge 3 Copyright © 2022 Pearson Education, Ltd. 10) Compared to interest rates on long-term U.S. government bonds, interest rates on three -month Treasury bills fluctuate and are on average. A) more; lower B) less; lower C) more; higher D) less; higher 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. A) lower; smaller B) lower; larger C) higher; smaller D) higher; larger Answer: D Question Status: Previous Edition AACSB: Reflective Thinking 12) Everything else held constant, a decline in interest rates will cause spending on housing to A) fall. B) remain unchanged. C) either rise, fall, or remain the same. D) rise. Answer: D Question Status: Previous Edition AACSB: Analytical Thinking 13) High interest rates might purchasing a house or car but at the same time high interest rates might saving. A) discourage; encourage B) discourage; discourage C) encourage; encourage D) encourage; discourage Answer: A Question Status: Previous Edition AACSB: Analytical Thinking 14) An increase in interest rates might saving because more can be earned in interest income. A) encourage B) discourage C) disallow 4 Copyright © 2022 Pearson Education, Ltd. D) invalidate Answer: A Question Status: Previous Edition AACSB: Analytical Thinking 15) Everything else held constant, an increase in interest rates on student loans A) increases the cost of a college education. B) reduces the cost of a college education. C) has no effect on educational costs. D) increases costs for students with no loans. Answer: A Question Status: Previous Edition AACSB: Analytical Thinking 16) High interest rates might cause a corporation to building a new plant that would provide more jobs. A) complete B) consider C) postpone D) contemplate Answer: C Question Status: Previous Edition AACSB: Analytical Thinking 17) The stock market is A) where interest rates are determined. B) the most widely followed financial market in the United States. C) where foreign exchange rates are determined. D) the market where most borrowers get their funds. Answer: B Question Status: Previous Edition AACSB: Reflective Thinking 18) Stock prices are A) relatively stable trending upward at a steady pace. B) relatively stable trending downward at a moderate rate. C) extremely volatile. D) unstable trending downward at a moderate rate. Answer: C Question Status: Previous Edition AACSB: Reflective Thinking 19) A rising stock market index due to higher share prices A) increases people's wealth, but is unlikely to increase their willingness to spend. B) increases people's wealth and as a result may increase their willingness to spend. C) decreases the amount of funds that business firms can raise by selling newly -issued stock. D) decreases people's wealth, but is unlikely to increase their willingness to spend.The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller solutions. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78998 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now