322-1

  1. The term "financial system" refers to the collection of markets, individuals and institutions, laws, regulations, and techniques through which cash is traded and interest rates determined. 

    A) True  
    B) False
    B) False
  2. The construction of office buildings, highways, schools, and homes is normally financed by loans from the financial markets.  
    A) True  
    B) False
    A) True  
  3. Arbitrageurs help to insure differentials between financial markets.
     
    A) True  
    B) False
    A) True  
  4. A major problem faced by Japan today is too little saving by its citizens.  

    A) True 
    B) False
    B) False
  5. The largest borrower in the capital market is:
     




    B) government.  
  6. Perfect liquidity is a trait held by:  





    E) none of the above
  7. Low savings rates in the United States prior to 2007 could be attributed to:  

    A) low unemployment.  
    B) short periods of prosperity.  
    C) direct experience of the Great Depression.  
    D) value of homes has risen substantially.   E) A and D only
    E) A and D only
  8. Two areas that are major sources of funding for loans are:
      




    E) none of the above
  9. Arbitrage occurs when:  





    E) none of the above
Author
SAngell3
ID
218948
Card Set
322-1
Description
322-1
Updated