ZuoTi.Pro
Question

1) A well-developed financial system that is operating efficiently: I. Lowers search costs associated with lending...

1) A well-developed financial system that is operating efficiently: I. Lowers search costs associated with lending and borrowing II. Leads to higher economic growth than otherwise possible III. Makes funds available to all prospective borrowers Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III

2)

Which of the following financial intermediaries are able to create new checkable deposits when making loans to borrowers?
I. Commercial banks
II. Money market mutual funds
III. Credit unions

Select one:

A. I only

B. I and II only

C. I and III only

D. II and III only

E. I, II, and III

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

ANSWER : B : I AND II ONLY

FINANCIAL SYSTEM WILL MAKE FUNDS AVAILABLE TO PROSPECTIVE BORROWERS IN ALL CONDITIONS BUT EFFICIENT IS ONE WHICH LEADS TO LOWER COST & HIGHER ECONOMIC GROWTH

ANSWER : C : I AND III ONLY

MUTUAL FUNDS DO NOT CREATE DEPOSITS (THUMBS UP PLEASE)

0 0
Add a comment
Know the answer?
Add Answer to:
1) A well-developed financial system that is operating efficiently: I. Lowers search costs associated with lending...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1) Funds for loans to borrowers can be created in the U.S. economy by: I. Depository...

    1) Funds for loans to borrowers can be created in the U.S. economy by: I. Depository intermediaries lending more money than they receive on deposit II. Depository intermediaries increasing the velocity of circulation of the existing money supply III. Non-depository intermediaries increasing the velocity of circulation of the existing money supply Select one: A. I and II only B. I and III only C. II and III only D. I, II, and III 2) Which of the following can increase...

  • 1) The total amount of loanable funds available to U.S. borrowers is influenced by changes in...

    1) The total amount of loanable funds available to U.S. borrowers is influenced by changes in Select one: A. the rate of savings. B. the availability of bank credit. C. the velocity of circulation. D. all of the above. 2) Which of the following is true concerning lending patterns and inflation? (I) Adaptive lag progressively considers inflation when making loans. (II) Complete illusion ignores inflation when making loans. (III) Rational expectations only partially considers inflation when making loans. Select one:...

  • Economics question CH30: The Banking System and Money Supply Suppose a country's financial system has $500,000...

    Economics question CH30: The Banking System and Money Supply Suppose a country's financial system has $500,000 in deposits and banks keep 100% in reserves. After a period of time, banks decide to keep $100,000 in reserves while the Central Bank requires 10% reserve ratic i. What is the initial money supply? ii. What is the current amount of loans this banking system is making? iii. What is the money supply after loans are made? iv. Are there any excess reserves?...

  • All of the statements below are not false, except: 1. Changes in interest rates represent a...

    All of the statements below are not false, except: 1. Changes in interest rates represent a risk for both borrowers and investors because of diminishing investment prospects and increased cost of borrowing; II. Failure to pay accounts receivable on time by customers may have a significant negative impact on the capital base of a company; III. Companies involved in cross-border trades are subject to FX risks: IV. It is essential for banks to assess the creditworthiness of customers to mitigate...

  • Question 1 (1 point) The four elements of a financial system are (1) institutions including banks...

    Question 1 (1 point) The four elements of a financial system are (1) institutions including banks and non-financial entities like households, 2) financial products, (3) venues where financial products can be exchanged and (4) ___________. Question 2 (1 point) For the past 65 years, the U.S. financial system has been characterized by, Question 2 options: a) Households that are surplus units, a government that is a surplus unit, businesses that are deficit units and a foreign sector is a surplus...

  • Multiple Choice: Choose the “best” answer. Please Answer all Money center banks rely more heavily on...

    Multiple Choice: Choose the “best” answer. Please Answer all Money center banks rely more heavily on wholesale and borrowed funds as sources of liability funding than do community banks. True False Commercial paper is an alternative (competitive product) for large established companies that otherwise would need a business loan from a commercial bank. True False There is only one regulatory agency for commercial banks in the U.S.. True False 4.   Customer deposits are classified on a DI's (depository banks) balance...

  • Given the following statements regarding fiscal policy, which is/are TRUE? (i). A decrease in a government’s budget defi...

    Given the following statements regarding fiscal policy, which is/are TRUE? (i). A decrease in a government’s budget deficit should lead to a fall in interest rates in a country. (ii). Changes in tax rates do not directly affect monetary policy. (iii). Increased borrowing by a government generally leads to a drop in interest rates. (iv). When a country is in recession, then decreasing taxes may deepen the recession. (v). For a progressive tax system, when people earn more, a country’s...

  • All of the statements below are not false, except: 1. Changes in interest rates represent a risk for both bor...

    All of the statements below are not false, except: 1. Changes in interest rates represent a risk for both borrowers and investors because of diminishing investment prospects and increased cost of borrowing; II. Failure to pay accounts receivable on time by customers may have a significant negative impact on the capital base of a company; III. Companies involved in cross-border trades are subject to FX risks: IV. It is essential for banks to assess the creditworthiness of customers to mitigate...

  • Year Period 1 2. Current Widget Price $0.75 1.35 Base Widget Price $0.75 0.75 0.75 0.75...

    Year Period 1 2. Current Widget Price $0.75 1.35 Base Widget Price $0.75 0.75 0.75 0.75 1.60 2.10 According to the above table, in Year 3, the price index for widgets is 180. 46.9. 213.3. 100. Component Currency Coins Transaction Deposits Saving Deposits Travelers' Checks Small Denomination Time Deposits Money Market Mutual Fund Shares Ovemight Eurodollars Available Credit on Credit Cards Amount (Billions of dollars) $600 35 570 450 8 2,144 1,430 16 1,000 According to the above table, the...

  • True/False (1 Point each) 1) When bond prices decrease, their yields to maturity increase. 2) The...

    True/False (1 Point each) 1) When bond prices decrease, their yields to maturity increase. 2) The best forms of money and financial systems enjoy the benefits of trust, belief, and stability. 3) A fundamental function of a commercial bank is to take in deposits and make loans. 4) Traditional banks operate with low margins and high leverage. 5) Rates on bonds issued by a government can be negative. 6) ) The default risk premium is the same as the credit...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT