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1. Which is not an example of a supplier of funds? a. A company issuing stock. b. An individual depositing money in the bank. c.

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1. Which is not an example of a supplier of funds? a. A company issuing stock. b. An individual depositing money in the bank. c. An investor buying shares of a mutual fund. d. An investor buying bonds. 2. Which is the best example of indirect finance? a. An individual borrowing money from a friend. b. An investor buying bonds. c. A company selling stock to investors. d. An individual borrowing from a bank. 3. The money market is: a. The market for long-run investors. b. The market where currency is exchanged C. Another name for the stock market. d. The market where short-term debt securities are bought and sold. 4. If expected inflation was 5%, actual inflation was 3% and the nominal interest rate wi ex post real interest rate was: a. 2% b. 3% c.4% d. 5% 5. If expected inflation was 4%, actual inflation was 3% and the nominal interest rate ex ante real interest rate was: a. 2% b. 3% C.4% d. 5%

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