Title: Financial Markets
Course: TEST Course

Q: ________ is considered the marketspace that bring lenders and borrowers together.
- A financial incentives
- A financial product
- The financial market
A: The financial market

Q: What type of financial vehicle or market brings lenders and borrowers together?
- Financial incentives.
- A financial product.
- The financial market.
A: The financial market.

Q: When organizations need money, they often borrow through what main method?
- Equity
- Assets
- Bonds
A: Bonds

Q: What is one of the main methods of borrowing for firms?
- Equity
- Assets
- Bonds
A: Bonds

Q: An example of a financial market is the ________.
- Fiat Market
- the Liability Market
- NASDAQ Stock Market
A: NASDAQ Stock Market

Q: Which of the following is an example of a financial market?
- Fiat Market
- The Barter Network
- New York Stock Exchange
A: New York Stock Exchange

Q: Corporate stock ________.
- represents debt in a firm.
- is considered to be a loan from a bank.
- represents ownership in a firm.
A: represents ownership in a firm.

Q: If a person owns stock in a corporation, what do they own?
- Corporate stock represents firm debt.
- Corporate stock is considered to be a bank bond.
- Corporate stock represents ownership in a firm.
A: Corporate stock represents ownership in a firm.

Q: Which of the following examples is excluded from being in the financial market for money?
- A household that deposits its savings in its local bank.
- A tech startup that needs a loan.
- A neighborhood watch service that charges by the day.
A: A neighborhood watch service that charges by the day.

Q: Which of the following scenarios illustrates a different market other than the financial market for money?
- A business going public on the New York Stock Exchange.
- A household securing a home loan from a bank.
- A child’s lemonade stand where she charges $1 cash per glass.
A: A child’s lemonade stand where she charges $1 cash per glass.

Q: Which of the following is considered a security?
- debit card
- $20 bill
- savings bond
A: savings bond

Q: What is an example of a security?
- Fiat money
- Checking account
- Credit cards
A: Credit cards

Q: Which economics principle is present in financial markets?
- conspicuous consumption
- rational decision making
- supply and demand
A: supply and demand

Q: In financial markets one of the main economics principles present is________.
- a command economy
- nominal decision making
- supply and demand
A: supply and demand

Q: What is NOT an example of a security?
- equities
- bonds
- fiat money
A: fiat money

Q: Of the following examples of securities, which example is excluded from being a security?
- equities
- bonds
- fiat money
A: fiat money

Q: What makes all financial markets linked directly or indirectly?
- Financial markets are linked because each financial market is isolated to be only a source of borrowed funds or only a destination for saving, not both.
- Because supply and demand is not an economic force operating in financial markets.
- Financial markets are vehicles for both borrowing funds and also where funds are saved.
A: Financial markets are vehicles for both borrowing funds and also where funds are saved.

Q: How are all financial markets linked indirectly or directly?
- The link is created because various financial markets specialize in either being solely a destination for savings or solely a source of borrowed funds, but not both.
- Financial markets remain uninhibited by the economic principle of supply and demand.
- Financial markets whether directly or indirectly have access to both borrowing funds and saving funds through various financial vehicles.
A: Financial markets whether directly or indirectly have access to both borrowing funds and saving funds through various financial vehicles.

Q: When the supply of loanable funds exceeds demand for loanable funds
- the interest rate will rise.
- the interest rate is unchanged.
- the interest rate will fall.
A: the interest rate will fall.

Q: The law of demand in the loanable funds market predicts a
- fall in consumer credit card use if the interest rate falls.
- decrease in credit card issuance if the interest rate rises.
- fall in consumer credit card use if the interest rate rises.
A: fall in consumer credit card use if the interest rate rises.

Q: Equilibrium in financial markets occurs at an interest rate where the quantity of loanable funds demanded is
- greater than the quantity of loanable funds supplied.
- less than the quantity of loanable funds supplied.
- equal to the quantity of loanable funds supplied.
A: equal to the quantity of loanable funds supplied.

Q: The equilibrium interest rate is the
- highest interest rate that borrowers are willing to pay on their loans.
- lowest interest rate at which lenders are willing to supply financial capital.
- interest rate at which the quantity of borrowed money equals the quantity of financial capital supplied.
A: interest rate at which the quantity of borrowed money equals the quantity of financial capital supplied.

Q: An interest rate is the ________ and the reward for lending money.
- total price of a purchase
- annual stock dividend
- price of borrowing money
A: price of borrowing money

Q: An interest rate is the price of borrowing money and the ________.
- total price of a purchase
- annual stock dividend
- reward for lending money
A: reward for lending money

Q: Consumers must choose whether they prefer to consume goods, including money, now or in the future. This is known as:
- the law of demand.
- consumer confidence.
- intertemporal decision making.
A: intertemporal decision making.

Q: ________ means that consumers make decisions across time about when they will consuming goods, including money, either in the future or at the present time.
- The law of supply
- Consumer determined decisions
- Intertemporal decision making
A: Intertemporal decision making