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Test-Bank-for-Economics-of-Money-Banking-and-Financial-Markets-The-Business-School-Edition-4th-Edition-sample
Economics of Money, Banking & Financial Markets, 4e (Bus. Schl. Ed.) 
Chapter 2 An Overview of the Financial System 
 
2.1 Function of Financial Markets 
 
1) Every financial market has the following characteristic. 
A) It determines the level of interest rates. 
B) It allows common stock to be traded. 
C) It allows loans to be made. 
D) It channels funds from lenders-savers to borrowers-spenders. 
Answer: D 
AACSB: Reflective thinking 
 
2) Financial markets have the basic function of 
A) g...
- Exam (elaborations)
- • 28 pages •
Economics of Money, Banking & Financial Markets, 4e (Bus. Schl. Ed.) 
Chapter 2 An Overview of the Financial System 
 
2.1 Function of Financial Markets 
 
1) Every financial market has the following characteristic. 
A) It determines the level of interest rates. 
B) It allows common stock to be traded. 
C) It allows loans to be made. 
D) It channels funds from lenders-savers to borrowers-spenders. 
Answer: D 
AACSB: Reflective thinking 
 
2) Financial markets have the basic function of 
A) g...