1. High-interest rates might ________ purchasing a house or car but at the same time high interest rates might ________ saving.

A) discourage; encourage

B) discourage; discourage

C) encourage; encourage

D) encourage; discourage

2. The stock market is

A) where interest rates are determined.

B) the most widely followed financial market in the United States.

C) where foreign exchange rates are determined.

D) the market where most borrowers get their funds

3. Changes in stock prices

A) do not affect people's wealth and their willingness to spend.

B) affect firms' decisions to sell stock to finance investment spending.

C) occur in regular patterns.

4. Poorly performing financial markets can be the cause of

A) wealth.

B) poverty.

C) financial stability.

D) financial expansion.

D) are unimportant to decision-makers