the economics of money, banking, and financial markets

5 "

© 2014 Pearson Canada Inc."

17. 
    

    Everything else held constant, an increase in interest rates on student loans ____.
    A) may increase the cost of education
    B) may reduce the cost of education
    C) has no effect on educational costs
    D) increases costs for students with no loans
    Answer: A
    Diff: 2 Type: MC Page Ref: 3
    Skill: Applied
    Objective List: 1.1 Outline what is involved in the study of financial markets

    
    


18. 
    

    A common stock ____.
    A) cannot be purchased by individuals
    B) is also known as a debt security
    C) is a share of ownership in a corporation
    D) is a claim on assets
    Answer: C
    Diff: 1 Type: MC Page Ref: 3
    Skill: Recall
    Objective List: 1.1 Outline what is involved in the study of financial markets

    
    


19. 
    

    A share of common stock is a claim on a corporation's ____.
    A) debt
    B) liabilities
    C) expenses
    D) earnings and assets
    Answer: D
    Diff: 1 Type: MC Page Ref: 3
    Skill: Recall
    Objective List: 1.1 Outline what is involved in the study of financial markets

    
    


20. 
    

    Lower interest rates might cause a corporation to ____ building a new plant that would
    provide more jobs.
    A) complete
    B) postpone
    C) consider
    D) start
    Answer: C
    Diff: 1 Type: MC Page Ref: 3
    Skill: Applied
    Objective List: 1.1 Outline what is involved in the study of financial markets