Exam 1: Why Study Money, banking, and Financial Markets

Markets in which funds are transferred from those who do not have a productive use for them to those who do are called ________.

Compared to interest rates on long-term bonds,interest rates on three-month Treasury bills fluctuate ________ and are ________ on average.

The price of one country's currency in terms of another country's currency is called the ________.

What crucial role do financial intermediaries perform in an economy?

From 1968-2011 the price level in Canada increased more than ________.

If your nominal income in 2002 is $50,000,and prices increase by 50 percent between 2002 and 2013,then to have the same real income,your nominal income in 2013 must be ________.

A financial crisis is ________.

If an economy has aggregate output of $2 trillion,then aggregate income is ________.

Budget deficits are important because deficits ________.

Financial institutions that accept deposits and make loans include ________.

A bond is ________.

Bonds of different maturities ________.

Lower interest rates might cause a corporation to ________ building a new plant that would provide more jobs.

Stock prices,as measured by the S&P/TSX Composite Index,________.

Why is it important to understand the bond market?

Budget deficits can be a concern because they might ________.

If the Canadian dollar price of a euro increases from $1.00 to $1.10,then,everything else held constant,________.

The bond markets are important because they are ________.

The management of money and interest rates is called ________ policy and is conducted by a nation's ________ bank.

The term "bank" generally includes all of the following institutions except ________.