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

A ________ is an example of a security, which is a claim on future income or ________.

If your nominal income in 2013 was $30000, and prices doubled between 2002 and 2013, to have the same real income, your nominal income in 2002 must be ________.

Canadian companies can borrow funds ________.

Countries with low inflation rates include ________.

An increase in interest rates might ________ saving because more can be earned in interest income.

The foreign exchange rate is ________.

If your nominal income in 2002 is $50000, and prices increase by 50 percent between 2002 and 2013, then to have the same real income, your nominal income in 2013 must be ________.

Which of the following are the largest financial intermediaries in the Canadian economy?

Stock prices are ________.

If ten years ago the prices of the items bought last month by the average consumer would have been much lower, then one can likely conclude that ________.

If the price level increases from 200 in year 1 to 220 in year 2, the rate of inflation from year 1 to year 2 is ________.

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

Financial crises are characterized by ________.

Complete Milton Friedman's famous statement, "Inflation is always and everywhere a ________ phenomenon."

Everything else held constant, a decrease in the value of the Canadian dollar relative to all foreign currencies means that the price of foreign goods purchased by Canadians ________.

Money is defined as ________.

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

The gross domestic product is the ________.

Channelling funds from individuals with savings to those desiring funds when the saver does not purchase the borrower's security is known as ________.

What crucial role do financial intermediaries perform in an economy?