Homework I FIN 3040 Fall 2015
Each question is worth 1 point.
U.S. monetary policy is best described as:
A. aimed at keeping inflation low and stable and growth high
B. determining the denominations of a country's
C. one o
An Introduction to Money and the Financial System
A healthy and constantly evolving financial system is the foundation for economic efficiency
and economic growth. It has six parts:
Financial instruments are used to transfer resources and risk.
Money and the Payments System
Money is an asset that is generally accepted in payment for goods and services or repayment
Money is liquid. Liquidity is the ease with which an asset can be turned into a means of
Financial Instruments, Financial Markets, and Financial Institutions
Financial instruments are crucial to the operation of the economy.
A financial instrument is the written legal obligation of one party to transfer something
of value, usually mo