HW1_Ques - Write your answers on the answer sheet provided...

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Write your answers on the answer sheet provided in the HW1 folder on blackboard. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Financial markets promote economic efficiency by 1) _______ A) channeling funds from investors to savers. B) channeling funds from savers to investors. C) reducing investment. D) creating inflation. 2) Well - functioning financial markets promote 2) _______ A) growth. B) unemployment. C) deflation. D) inflation. 3) The bond markets are important because they are 3) _______ A) easily the most widely followed financial markets in the United States. B) the markets where all borrowers get their funds. C) the markets where foreign exchange rates are determined. D) the markets where interest rates are determined. 4) High interest rates might cause a corporation to ________ building a new plant that would provide more jobs. 4) _______ A) complete B) postpone C) consider D) contemplate 5) A rising stock market index due to higher share prices 5) _______ A) decreases people's wealth, but is unlikely to increase their willingness to spend.
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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 University of Oregon.

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HW1_Ques - Write your answers on the answer sheet provided...

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