Test Bank: Advanced Practice Nursing in the Care of
Older Adults 2nd Edition by Malone - Ch. 1-19,
9780803666610, with Rationales
Identify which item is not one of the six parts of the financial system. -
ANSWER:Credit cards.
Identify which of the following is not one of the five core principles of
money and banking. - ANSWER:Stability creates risk.
Which of the following is an example of a financial market? - ANSWER:A
local coffeehouse where people regularly buy and sell financial
instruments.
In the United States, control of the money supply is given to: -
ANSWER:The Federal Reserve System.
The New York Stock Exchange is an example of: - ANSWER:A financial
market
The primary function of central banks is to: - ANSWER:Control inflation
and help reduce business cycle fluctuations.
Which of the following would not be considered a characteristic of
money? - ANSWER:It must have intrinsic value
The unit of account characteristic of money: - ANSWER:Means all prices
are expressed in terms of money
While money is an asset, not all assets are money because: -
ANSWER:money is a convenient means of payment
, Which of the following statements is most correct? - ANSWER:Money is
wealth but not all wealth is money
The value of fiat money: - ANSWER:Comes from government decree
Checks are: - ANSWER:not money
The money aggregate M1 includes each of the following, except: -
ANSWER:gold in the vaults of commercial banks
The most closely followed monetary aggregate is: - ANSWER:M2 since its
movement is most closely related to the overall economy
The Consumer Price Index: - ANSWER:Is a fixed-expenditure weight
index used to measure changes in purchasing power for households
The U.S. government finances its budget deficits: - ANSWER:Using bonds
that are directly financed.
Financial instruments are used to channel funds from: - ANSWER:Savers
to borrowers in financial markets and via financial institutions
A bank is a financial intermediary. Which of the following statements is
most accurate? - ANSWER:The bank's depositors are the ultimate
lenders, while those seeking loans from the bank are the ultimate
spenders.
Considering the value of a financial instrument, the bigger the size of the
promised payment: - ANSWER:The more valuable the financial
instrument.
Most of the buying and selling in primary markets: - ANSWER:Involves an
investment bank
Financial intermediaries handle a larger flow of funds than do primary
markets primarily because financial intermediaries: - ANSWER:Can lower
transaction costs and increase liquidity for savers.
Which of the following is not considered to be a shadow bank? -
ANSWER:Credit unions
Older Adults 2nd Edition by Malone - Ch. 1-19,
9780803666610, with Rationales
Identify which item is not one of the six parts of the financial system. -
ANSWER:Credit cards.
Identify which of the following is not one of the five core principles of
money and banking. - ANSWER:Stability creates risk.
Which of the following is an example of a financial market? - ANSWER:A
local coffeehouse where people regularly buy and sell financial
instruments.
In the United States, control of the money supply is given to: -
ANSWER:The Federal Reserve System.
The New York Stock Exchange is an example of: - ANSWER:A financial
market
The primary function of central banks is to: - ANSWER:Control inflation
and help reduce business cycle fluctuations.
Which of the following would not be considered a characteristic of
money? - ANSWER:It must have intrinsic value
The unit of account characteristic of money: - ANSWER:Means all prices
are expressed in terms of money
While money is an asset, not all assets are money because: -
ANSWER:money is a convenient means of payment
, Which of the following statements is most correct? - ANSWER:Money is
wealth but not all wealth is money
The value of fiat money: - ANSWER:Comes from government decree
Checks are: - ANSWER:not money
The money aggregate M1 includes each of the following, except: -
ANSWER:gold in the vaults of commercial banks
The most closely followed monetary aggregate is: - ANSWER:M2 since its
movement is most closely related to the overall economy
The Consumer Price Index: - ANSWER:Is a fixed-expenditure weight
index used to measure changes in purchasing power for households
The U.S. government finances its budget deficits: - ANSWER:Using bonds
that are directly financed.
Financial instruments are used to channel funds from: - ANSWER:Savers
to borrowers in financial markets and via financial institutions
A bank is a financial intermediary. Which of the following statements is
most accurate? - ANSWER:The bank's depositors are the ultimate
lenders, while those seeking loans from the bank are the ultimate
spenders.
Considering the value of a financial instrument, the bigger the size of the
promised payment: - ANSWER:The more valuable the financial
instrument.
Most of the buying and selling in primary markets: - ANSWER:Involves an
investment bank
Financial intermediaries handle a larger flow of funds than do primary
markets primarily because financial intermediaries: - ANSWER:Can lower
transaction costs and increase liquidity for savers.
Which of the following is not considered to be a shadow bank? -
ANSWER:Credit unions
