Can anyone help with economics?
Chapter 1 Introducing Money and the Financial System 1.1 Multiple Choice Questions 1) All of the following were events in the financial world in the early 2000s EXCEPT A) fears of deflation in Japan, the Eurozone, and the United States. B) governments of Eastern Europe abandoned communism. C) Argentina defaulted on its public debt. D) the value of the dollar declined significantly. 2) The financial system is primarily a means by which A) borrowers can use savers' funds until the savers themselves need the funds. B) money is put into circulation. C) the government puts into operation its plans for the economy. D) business firms distribute their goods. 3) Which of the following is NOT a financial instrument? A) a bond issued by Google B) Wachovia Bank C) A home mortgage loan D) a certificate of deposit 4) If you buy a bond issued by Intel, the bond is a(n): A) liability to Intel and an asset to you. B) liability to you and an asset to Intel. C) liability to both you and Intel. D) asset to both you and Intel. 5) Why would a saver with $10,000 be more likely to put it into a bank account than to lend it directly to a borrower? A) Direct loans of that sort are not legal in the United States. B) Banks pay higher interest rates on deposits than individual borrowers are likely to pay to individual lenders. C) It is easier and less risky to save money in a bank account and allow the bank to serve as a go-between with potential borrowers. D) Interest received from a bank is deductible on the federal income tax, whereas interest received from an individual borrower is not. Question Status: Previous Edition 6) Formerly in Eastern Europe and the Soviet Union, funds were transferred between savers and borrowers primarily through the A) banking system. B) stock market. C) bond market. D) government. Question Status: Previous Edition 7) The experiences of Eastern Europe and the former Soviet Union have demonstrated that A) using private networks in a financial system to channel funds from savers to borrowers is not a good approach. B) using the government to channel funds from savers to borrowers is not a good approach. C) the government can be very effective in increasing private saving. D) savers are usually willing to lend greater amounts than borrowers wish to borrow. Question Status: Previous Edition 8) Which of the following is NOT a key financial service provided by the financial system? A) Risk sharing B) Profitability C) Liquidity D) Information Question Status: Previous Edition 9) Economists define risk as A) the difference between the interest rate borrowers pay and the interest rate lenders receive. B) the degree of uncertainty of an asset's return. C) the ease with which an asset can be exchanged for other assets or for goods and services. D) the difference between the return on common stock and the return on corporate bonds. Question Status: Previous Edition 10) Economists define liquidity as A) the difference between the return on the asset and the return on a long-term U.S. Treasury bond. B) the fraction the asset makes up of an investor's portfolio. C) the ease with which an asset can be exchanged for other assets or for goods and services. D) the difference between the total demand for an asset and the total supply of the asset. Question Status: Previous Edition 11) Which of the following assets is the most liquid? A) Money market mutual fund B) Computer C) Washing machine D) U.S. Treasury bond Question Status: New 12) By providing and communicating information, the financial system A) reduces the difference between the return on three-month U.S. Treasury bills and the return on thirty-year U.S. Treasury bonds. B) relieves individual savers from the necessity of searching out individual borrowers. C) eliminates the risk in investing in the stock market. D) guarantees investors a reasonable return on their money. 13) Which of the following statements is correct? A) The financial sector is a large source of jobs in the U.S. economy, but a relatively small source of jobs in other major economies. B) The financial sector is a relatively small source of jobs in the U.S. economy, but a large source of jobs in other major economies. C) The financial sector is a large source of jobs in the U.S. and other major economies. D) The financial sector is a relative
Economics - 1 Answers
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You're joking, right?