1、Name: Class: Date: Chapter8-Saving,Investment,andtheFinancialSystem1. Whenopeningaspa,youmayneedtobuytables,asoundsystem,andcreditcardprocessingequipment.Whatdoeconomistscalltheseexpenditures? a. capitalinvestment b. investmentinhumancapital c. businessconsumptionexpenditures
2、d. inventoriesANSWER: a2. WhenacountrysavesalargerportionofitsGDP,willithavemoreorlessinvestment? a. Itwillhavelessinvestment,andsoitwillhavemorecapitalandhigherproductivity. b. Itwillhavelessinvestment,andsoitwillhavelesscapitalandhigherproductivity. c. Itwillhavemoreinvestmen
3、t,andsoitwillhavemorecapitalandhigherproductivity. d. Itwillhavemoreinvestment,andsoitwillhavelesscapitalandhigherproductivity.ANSWER: c3. Whichtermreferstoinstitutionsthathelptomatchoneperson’ssavingwithanotherperson’sinvestment? a. theBankofCanada b. thebankingsystem c. themo
4、netarysystem d. thefinancialsystemANSWER: d4. Reggie’sincomeexceedshisexpenditures.WhichstatementbestdescribesReggie? a. Heisasaverwhodemandsmoneyfromthefinancialsystem. b. Heisasaverwhosuppliesmoneytothefinancialsystem. c. Heisaborrowerwhodemandsmoneyfromthefinancialsystem. d.
5、 Heisaborrowerwhosuppliesmoneytothefinancialsystem.ANSWER: b5. Baileywantstostartherowndentalpractice,butherexpendituresexceedherincome.WhichstatementbestdescribesLucy? a. Sheisasaverwhodemandsmoneyfromthefinancialsystem. b. Sheisasaverwhosuppliesmoneytothefinancialsystem. c. S
6、heisaborrowerwhodemandsmoneyfromthefinancialsystem. d. Sheisaborrowerwhosuppliesmoneytothefinancialsystem.ANSWER: c6. Whatisabond? a. afinancialintermediary b. acertificateofindebtedness c. acertificateofpartialownershipinanenterprise d. amortgageANSWER: bCopyrightCengageLearn
7、ing.PoweredbyCognero.Page 40Name: Class: Date: Chapter8-Saving,Investment,andtheFinancialSystem7. Whichtermreferstoacertificateofindebtednessthatspecifiestheobligationsoftheborrowertotheholder? a. bond b. stock c. mutualfund d. savingsplanANSWER: a8. Ifthegovernment’sexpendit
