the economics of money, banking, and financial markets

212 #

© 2014 Pearson Canada Inc.#

Economics of Money, Banking & Financial Markets, 5e (Mishkin)
Chapter 8 An Economic Analysis of Financial Structure

8.1 Basic Facts About Financial Structure Throughout the World

1. 
   

   The financial system includes all but the following type of institutions.
   A) banks
   B) insurance companies
   C) mutual funds
   D) public relations firms
   Answer: D
   Diff: 1 Type: MC Page Ref: 160
   Skill: Recall
   Objective List: 8.1 Depict how asymmetric information results in adverse selection and moral
   hazard

   
   


2. 
   

   Canadian businesses used stocks for external financing ____ percent over the 1970 -
   2002 period.
   A) 2
   B) 12
   C) 22
   D) 0.2
   Answer: B
   Diff: 1 Type: MC Page Ref: 161
   Skill: Recall
   Objective List: 8.1 Depict how asymmetric information results in adverse selection and moral
   hazard

   
   


3. 
   

   Canadian businesses get their external funds primarily from ____.
   A) bank loans
   B) bonds and commercial paper issues
   C) stock issues
   D) loans from nonbank financial intermediaries
   Answer: A
   Diff: 1 Type: MC Page Ref: 161
   Skill: Recall
   Objective List: 8.1 Depict how asymmetric information results in adverse selection and moral
   hazard