the economics of money, banking, and financial markets

306 $

© 2014 Pearson Canada Inc.$

12. 
    

    The most important source of the changes in supply conditions that stimulate financial
    innovation has been the ____.
    A) deregulation of financial institutions
    B) dramatic increase in the volatility of interest rates
    C) improvement in computer and telecommunications technology
    D) dramatic increase in competition from foreign banks
    Answer: C
    Diff: 3 Type: MC Page Ref: 244
    Skill: Recall
    Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
    system"

    
    


13. 
    

    New computer technology has ____.
    A) increased the cost of financial innovation
    B) increased the demand for financial innovation
    C) reduced the cost of financial innovation
    D) reduced the demand for financial innovation
    Answer: C
    Diff: 1 Type: MC Page Ref: 244
    Skill: Recall
    Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
    system"

    
    


14. 
    

    Credit cards date back to ____.
    A) prior to the second World War
    B) just after the second World War
    C) the early 1950s
    D) the late 1950s
    Answer: A
    Diff: 1 Type: MC Page Ref: 244
    Skill: Recall
    Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
    system"

    
    


15. 
    

    A firm issuing credit cards earns income from ____.
    A) loans it makes to credit card holders
    B) subsidies from the local governments
    C) payments made to it by manufacturers of the products sold in stores on credit card purchases
    D) sales of the card in foreign countries
    Answer: A
    Diff: 2 Type: MC Page Ref: 244
    Skill: Recall
    Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
    system"