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Test Bank for The Economics of
Money Banking and Financial
Markets 13th Global Edition
Frederic Mishkin
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 as
vers.
B) creating inflation.
C) channeling funds from savers to
invest
torso.
Answer:
C D) reducing investment.
Quess Sṭaṭus: Revised
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
Quess Sṭaṭus: New
3) Well-functioning financial markets promote
A) inflation.
B) deflation.
C) unemployment.
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