Which of the following institutions may buy government bonds in BOTH the primary and the secondary market, in most developed countries? a. foreign investors b. large financial institutions with abundant liquidity c. corporations d. the central bank

Which of the following factors pose a limit on the ability of commercial banks to increase the quantity of money in circulation by extending new loans? Select one or more: a. the quantity of Central Bank reserves that they own b. the quantity of money that savers lent to them by opening deposits c. the behavior of households and firms, which reduce the quantity of money in circulation by repaying previous loans. d. the availability of profitable lending opportunities in the economy e. the willingness of household and firms to take up new debts at the given interest rate

The following are correct about financial intermediaries, EXCEPT? *A. Financial intermediaries are non-profit institutions which aims to help those in need of funds.B. None of the choices.C. Financial intermediaries collect interest rates from borrowers of funds.D. Financial intermediaries offer varying interest rates, and there is no such thing as a standard interest rate.E. Financial intermediaries conducts background to borrowers before granting loans.

The suppliers of loanable funds are Select one: a. people who save money at banks. b. banks who give loans to borrowers. c. central banks (like the Federal Reserve System) that produce currency and coins. d. borrowers who supply loan applications to banks.

Mr. John Dela Cruz, wanted to start investing in the stock market, which of the following financial intermediaries can help him? *A. BanksB. Pension Fund CompaniesC. Brokerage FirmsD. Insurance CompaniesE. Cooperatives

In the late 1990s, the U.S. government moved from a budget deficit to a budget surplus and the trade deficit in the U.S. economy grew substantially. Using the national saving and investment identity, what can you say about the direction in which saving on/or investment must have changed in this economy?

Explain what happens in an economy when the financial markets limit access to capital. How does this affect economic growth and employment?

Financial capital includes A. money, stocks, and bonds, which are capital because they provide businesses with financial resources O B. money, stocks, and bonds, which are not capital because they are not used to produce goods and services O C. banks and credit unions, which are capital because they are used to produce financial services O D. the nation's banking system, which is capital because it is the backbone of the economy

Thinking about a bond, an economist would argue that it really is ... Group of answer choices 1. A financial instrument that is illegal in the United States 2. A way for companies or governments to borrow money 3. A way for citizens to borrow money from companies 4. A financial instrument issued by private citizens

Q8. Economic models like the are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories. A. financial capital market B. circular flow diagram C. financial investment market D. Specialization Model