Practice M ultiple-Choice Questions for
M oney and Banking
W hy Study M oney, Banking, and Financial M arkets: Chapter 1
Money appears to have a major influence on
b. the business cycle.
c. interest rates.
*d. each of the above.
In the Unite
THEMES IN 330- Money Banking and Financial Markets- 2012 Nature of uncertainty-reality-risk: exploring our assumptions Greed, Herds and rationality-nature of man: exploring our assumptions Institutions and incentives- the political economy and limits of r
Topics for Today
Quality uncertainty and the market for
Solutions to adverse selection problem
Moral hazard problem within an
organization and its solutions