Finanical Markets

Chapter 1 Why Study Financial Markets and Institutions? 1.1 Multiple natural selection Questions 1) Financial markets and institutions A) involve the movement of huge quantities of money. B) affect the net profit of businesses. C) affect the types of goods and services produced in an economy. D) do all of the above. E) do only (A) and (B) of the above. Answer: D 2) Markets in which funds ar transferred from those who have excess funds available to those who have a shortage of available funds ar called A) commodity markets. B) fund-available markets. C) differential coefficient supersede markets. D) financial markets. Answer: D 3) The price gainful for the rental of borrowed funds (usually expressed as a function of the rental of $100 per year) is commonly referred to as the A) inflation rate. B) transposition rate. C) by-line rate. D) aggregate price level. Answer: C 4) The vex markets are important because A) they are easily the most astray followed financial markets in the United States. B) they are the markets where foreign exchange place are determined. C) they are the markets where interest rates are determined. D) of all of the above. E) of only (A) and (B) of the above. Answer: C 5) Interest rates are important to financial institutions since an interest rate change magnitude A) decreases the cost of acquiring funds.

B) increases the cost of acquiring funds. C) raises the income from assets. D) (B) and (C) of the above. E) (A) and (C) of the above. Answer: D 6) Typically, increase interest rates A) discourage corporate investments. B) discourage individuals from saving. C) get ahead corporate expansion. D) encourage corporate borrowing. E) no(prenominal) of the above. Answer: A 7) Compared to interest rates on long-term U.S. government bonds, interest rates on ____ fluctuate more and are move on average. A) medium-quality corporate bonds B) low-quality corporate bonds C) high-quality corporate bonds D) three-month Treasury bills E) none of the above Answer: D 8) Compared to interest rates on... If you want to get a full essay, order it on our website: Ordercustompaper.com

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