Test_Bank_The_Economics_of_Money_Banking.

Test_Bank_The_Economics_of_Money_Banking.




The Economics of Money, Banking, and Fina




Collections of Test Banks covered

chapter 1,2,3,4, and 5.




To all my colleagues who study this important subject from

I present you a collection of test banks which covers

Hopefully, will help you as it helped me in my


With my best wishes,


Mohamed Bagoul.

,Test_Bank_The_Economics_of_Money_Banking.




The Economics of Money, Banking, and Financial Markets This

,Test_Bank_The_Economics_of_Money_Banking.


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
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
Answer: C
Ques Status: Previous Edition

3) Well-functioning financial markets promote
A) inflation.
B) deflation.
C) unemployment.
D) growth.
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.
Answer: B
Ques Status: New

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.

, Test_Bank_The_Economics_of_Money_Banking.

The Economics of Money, Banking, and Financial Markets This