Test Bank for Money, Banking, and the Financial System, 5th edition Glenn Hubbard Anthony Patrick O'Brien Chapter 1-18
Money, Banking, and the Financial System, 5e (Hubbard/O'Brien) Chapter 1 Introducing Money and the Financial System 1.1 Key Components of the Financial System 1) The financial system is primarily a means by which A) funds are transferred from savers to borrowers. B) money is put into circulation. C) the government puts into operation its plans for the economy. D) business firms distribute their goods. Answer: A Diff: 1 Page Ref: 4 Topic: financial system Objective: Identify the key components of the financial system *: Recurring AACSB: Reflective Thinking 2) Which of the following is NOT a financial asset? A) a bond issued by Google B) Wells Fargo Bank C) a home mortgage loan D) a certificate of deposit Answer: B Diff: 1 Page Ref: 2 Topic: financial assets Objective: Identify the key components of the financial system *: Recurring AACSB: Reflective Thinking 3) If you buy a bond issued by Intel, the bond is a(n) A) liability to Intel and an asset to you. B) liability to you and an asset to Intel. C) liability to both you and Intel. D) asset to both you and Intel. Answer: A Diff: 2 Page Ref: 4 Topic: financial assets Objective: Identify the key components of the financial system *: Recurring AACSB: Reflective Thinking