The Economics Of Money Banking And Financial Markets 6th Canadian Edition By Mishkin – Test Bank

The Economics Of Money Banking And Financial Markets 6th Canadian Edition By Mishkin – Test Bank

Table of Content

1. Why Study Money, Banking, and Financial Markets?
2. An Overview of the Financial System
3. What is Money?
4. The Meaning of Interest Rates
5. The Behaviour of Interest Rates
6. The Risk and Term Structure of Interest Rates
7. The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis
8. An Economic Analysis of the Financial Structure
9. Financial Crises
10. Economic Analysis of Financial Regulation
11. Banking Industry: Structure and Competition
12. Banking and the Management of Financial Institutions
13. Risk Management with Financial Derivatives
14. Central Banks and the Bank of Canada
15. The Money Supply Process
16. Tools of Monetary Policy
17. The Conduct of Monetary Policy: Strategy and Tactics
18. The Foreign Exchange Market
19. The International Financial System
20. Quantity Theory, Inflation, and the Demand for Money
21. The IS Curve
22. The Monetary Policy and Aggregate Demand Curves
23. Aggregate Demand and Supply Analysis
24. Monetary Policy Theory
25. The Role of Expectations in Monetary Policy
26. Transmission Mechanisms of Monetary Policy
Web Chapter1. Financial Crises in Emerging Market Economies
Web Chapter2. The ISLM Model
Web Chapter3. Nonbank Finance

Economics of Money, Banking, and Financial Markets 6e (Mishkin)

Chapter 1   Why Study Money, Banking, and Financial Markets?

1.1   Why Study Financial Markets?

1) Financial markets promote economic efficiency by ________.

A) channelling funds from investors to savers

B) creating inflation

C) channelling funds to those who have a productive use for them

D) reducing investment

Answer:  C

Diff: 1      Type: MC

Skill:  Recall

Objective:  1.1 Recognize the importance of financial markets in the economy.

2) Well-functioning financial markets promote ________.

A) inflation

B) deflation

C) unemployment

D) economic growth

Answer:  D

Diff: 1      Type: MC

Skill:  Recall

Objective:  1.1 Recognize the importance of financial markets in the economy.

3) 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

Diff: 1      Type: MC

Skill:  Recall

Objective:  1.1 Recognize the importance of financial markets in the economy.

4) Markets in which funds are transferred from those who do not have a productive use for them to those who do are called ________.

A) commodity markets

B) fund-available markets

C) derivative exchange markets

D) financial markets

Answer:  D

Diff: 1      Type: MC

Skill:  Recall

Objective:  1.1 Recognize the importance of financial markets in the economy.

5) ________ markets transfer funds from people who do not have a productive use for them to people who do.

A) Commodity

B) Fund-available

C) Financial

D) Derivative exchange

Answer:  C

Diff: 1      Type: MC

Skill:  Recall

Objective:  1.1 Recognize the importance of financial markets in the economy.

6) Poorly performing financial markets can be the cause of ________.

A) wealth

B) poverty

C) financial stability

D) financial expansion

Answer:  B

Diff: 1      Type: MC

Skill:  Recall

Objective:  1.1 Recognize the importance of financial markets in the economy.

7) The bond markets are important because they are ________.

A) easily the most widely followed financial markets in Canada

B) the markets where foreign exchange rates are determined

C) where corporations and governments borrow to finance their activities

D) the markets where all borrowers get their funds

Answer:  C

Diff: 1      Type: MC

Skill:  Recall

Objective:  1.1 Recognize the importance of financial markets in the economy.

8) A security is also known as ________.

A) a financial instrument

B) a contingent claim

C) the interest rate

D) a liability 

Answer:  A

Diff: 1      Type: MC

Skill:  Applied

Objective:  1.1 Recognize the importance of financial markets in the economy.

9) A bond is ________.

A) not as good as investment as stocks

B) pays interest sporadically

C) never pays interest

D) makes payments periodically for a specified period of time

Answer:  D

Diff: 1      Type: MC

Skill:  Recall

Objective:  1.1 Recognize the importance of financial markets in the economy.

10) The fluctuation of interest rates ________. 

A) never occurs because the central bank is involved in setting the rate

B) is due to changes in stock prices

C) cannot occur because there is only one interest rate 

D) impacts all Canadians 

Answer:  D

Diff: 1      Type: MC

Skill:  Recall

Objective:  1.1 Recognize the importance of financial markets in the economy.