lOMoARcPSD|22896205
The Economics of Money, Banking, and Financial
Markets 9th Edition (Mishkin) Test Bank – Chapters
1–15 Questions and Verified Answers
pg. 1
, lOMoARcPSD|22896205
2 Mishkin · The Economics of Money, Banking, and Financial Markets, 9th Edition
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.
Correct Answer ✅:C
Ques Status: Previous Edition
2) Financial markets promote greater economic efficiency
by channeling funds from ________ to ________.
A) investors; savers B)
borrowers; savers C) savers;
borrowers
D) savers; lenders
The Economics of Money, Banking, and Financial Markets 9th Edition (Mishkin) Test
Bank – Chapters 1–15 Questions and Verified Answers
pg. 2
, lOMoARcPSD|22896205
Chapter 1 Why Study Money, Banking, and Financial Markets? 3
Correct Answer ✅:C
Ques Status: Previous Edition
3) Well-functioning financial markets promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Correct Answer ✅:D
Ques Status: Previous Edition
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.
Correct Answer ✅:B
Ques Status: New
The Economics of Money, Banking, and Financial Markets 9th Edition (Mishkin) Test
Bank – Chapters 1–15 Questions and Verified Answers
pg. 3
, lOMoARcPSD|22896205
4 Mishkin · The Economics of Money, Banking, and Financial Markets, 9th Edition
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.
Correct Answer ✅:D
Ques Status: Previous Edition
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
Correct Answer ✅:C
Ques Status: Previous Edition
7) Poorly performing financial markets can be the cause of A) wealth.
B) poverty.
C) financial stability.
The Economics of Money, Banking, and Financial Markets 9th Edition (Mishkin) Test
Bank – Chapters 1–15 Questions and Verified Answers
pg. 4
The Economics of Money, Banking, and Financial
Markets 9th Edition (Mishkin) Test Bank – Chapters
1–15 Questions and Verified Answers
pg. 1
, lOMoARcPSD|22896205
2 Mishkin · The Economics of Money, Banking, and Financial Markets, 9th Edition
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.
Correct Answer ✅:C
Ques Status: Previous Edition
2) Financial markets promote greater economic efficiency
by channeling funds from ________ to ________.
A) investors; savers B)
borrowers; savers C) savers;
borrowers
D) savers; lenders
The Economics of Money, Banking, and Financial Markets 9th Edition (Mishkin) Test
Bank – Chapters 1–15 Questions and Verified Answers
pg. 2
, lOMoARcPSD|22896205
Chapter 1 Why Study Money, Banking, and Financial Markets? 3
Correct Answer ✅:C
Ques Status: Previous Edition
3) Well-functioning financial markets promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Correct Answer ✅:D
Ques Status: Previous Edition
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.
Correct Answer ✅:B
Ques Status: New
The Economics of Money, Banking, and Financial Markets 9th Edition (Mishkin) Test
Bank – Chapters 1–15 Questions and Verified Answers
pg. 3
, lOMoARcPSD|22896205
4 Mishkin · The Economics of Money, Banking, and Financial Markets, 9th Edition
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.
Correct Answer ✅:D
Ques Status: Previous Edition
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
Correct Answer ✅:C
Ques Status: Previous Edition
7) Poorly performing financial markets can be the cause of A) wealth.
B) poverty.
C) financial stability.
The Economics of Money, Banking, and Financial Markets 9th Edition (Mishkin) Test
Bank – Chapters 1–15 Questions and Verified Answers
pg. 4
