Sample Questions

Sample Questions - Sample Questions: Exam 1 1. The unit of...

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Sample Questions: Exam 1 1. The unit of account characteristic of money: A. Makes it difficult to compare the relative prices of goods and services B. Refers to how we use money to transfer purchasing power over time C. Means all prices are expressed in terms of money D. Means that money finalizes payments 2. Financial instruments are different from money because: A. They can act as a store of value and money cannot B. They can't be a means of payment but money can C. They can allow for the transfer of risk D. They have greater liquidity 3. Financial intermediaries include each of the following, except : A. The New York Stock Exchange B. Credit unions C. Savings banks D. Commercial banks 4. Financial institutions: A. Raise the level of transaction costs relating to borrowing/ending B. Can lower the information asymmetry involved with borrowing/ending C. Decrease the liquidity to savers D. Are required for all financial transactions 5. The purchasing power of money: A. Rises when inflation rises. B. Decreases as the price level decreases. C. Decreases with inflation. D. Is not impacted by inflation, only by monetary policy.
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6. How do central banks, like the U.S. Federal Reserve, contribute to the welfare of a society? 7. What evidence is there that the transaction costs involved with the buying and selling
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This note was uploaded on 02/09/2010 for the course FIN 355 taught by Professor Phillips,s during the Spring '08 term at Syracuse.

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Sample Questions - Sample Questions: Exam 1 1. The unit of...

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