hmwk1 mc questions

hmwk1 mc questions - Homework 1 - MC Questions EC370 - W09...

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Homework 1 - MC Questions EC370 - W09 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Financial markets promote economic efficiency by 1) _______ A) creating inflation. B) channeling funds from savers to investors. C) channeling funds from investors to savers. D) reducing investment. 2) Well - functioning financial markets promote 2) _______ A) unemployment. B) inflation. C) growth. D) deflation. 3) The stock market is important because it is 3) _______ A) the most widely followed financial market in the United States. B) the market where most borrowers get their funds. C) where foreign exchange rates are determined. D) where interest rates are determined. 4) A common stock is a claim on a corporation's 4) _______ A) liabilities. B) expenses. C) debt. D) earnings and assets. 5) Secondary markets are important because 5) _______ A) they represent an important source of cash for public companies. B) they allow for the trading of secondary financial assets. C) they are useful in determining offering prices in primary markets. D) they provide work for investment bankers. 6) Everything else constant, a stronger dollar will mean that 6) _______ A) Japanese cars become more expensive. B)
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This note was uploaded on 10/17/2009 for the course EC 370 taught by Professor Staff during the Spring '08 term at Oregon.

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hmwk1 mc questions - Homework 1 - MC Questions EC370 - W09...

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