The Term Financial System Refers to

Q1: Lower financing costs (interest rates)<br>A) Encourage businesses

Q3: State and local governments<br>A) Are chronic deficit

Q4: If government spending were to increase and

Q5: Which of the following is characteristic of

Q6: An effective financial system<br>A) Reallocates risk toward

Q7: Households<br>A) Are dis-savers in their early and

Q8: Commercial banks<br>A) Are surplus units<br>B) Are deficit

Q9: In a competitive financial system<br>A) Surplus funds

Q10: If funds supplied by surplus units exceeded

Q11: Businesses<br>A) Are deficit units because the profit-maximizing