1、MACROCHAPTER9TESTQUESTIONSMoney,Prices,andtheFinancialSystem MultipleChoiceQuestions 1. IntheUnitedStatessavingisallocatedtoitsmostproductiveuseby: A. theFederalReserve.B. theFederal,state,andlocalgovernments.C. regulationsandlawsdesignedtoimproveproductivity.
2、D. adecentralized,market-orientedfinancialsystem. 2. Decentralizedmarket-basedfinancialsystemsimprovetheallocationofsavingby: A. insuringcapitalgainsexceeddividendpayments.B. eliminatingtheneedforcommercialbanksorotherfinancialintermediaries.C. matchingnetcapi
3、talinflowstonetcapitaloutflows.D. providinginformationandrisk-sharingservices. 3. Thefinancialsystemconsistsoffinancial_____,suchascommercialbanks,andfinancial_____,suchasthestockmarket. A. markets;intermediariesB. allocations;investmentsC. intermediaries;mark
4、etsD. markets;institutions 4. Firmsthatextendcredittoborrowersusingfundsfromsaversarecalled: A. bonddealers.B. stockbrokers.C. centralbanks.D. financialintermediaries. loanapprovalandpostcreditapprovalofficer/atalllevelsinaccordancewithcreditapprovalrules,lice
5、nsingandeventualexerciseofcreditdecisionpowerofpersonsorinstitutions.Reviewfindingsandreviewcomments,accordingtotheBank'scredit5. Thespecializedinformation-gatheringactivitiesthatbanksusetoevaluateborrowersareanexampleofthe: A. cost-benefitprinciple.B. princip
6、leofcomparativeadvantage.C. scarcityprinciple.D. principleofincreasingopportunitycost. 6. Privately-ownedfirmsthatacceptdepositsfromindividualsandbusinessesandusethosedepositstomakeloansarecalled: A. mortgagebanks.B. brokeragefirms.C. commercialbanks.D. invest
7、mentbanks. 7. Bankshelpsaversfindproductiveusesfortheirfundsbecausebankshavespecializedin: A. gatheringinformationaboutandevaluatingpotentialborrowers.B. obtainingpreferentialtaxtreatmentforsavers.C. securinggovernmentguaranteesforloans.D. evaluatingtheriskine
8、ssofstocks. 8. Financialintermediaries,suchascommercialbanks,helpborrowers,particularlysmallborrowers,by: A. providinginformationtoevaluatepotentiallenders.B. offeringtax-preferred
