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Financial Economics multiple choice questions only one alternative is correct to each picture 1) Markets in which funds are transferred from those who have excess

Financial Economics multiple choice questions only one alternative is correct to each picture

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1) Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called A) commodity markets. B) funds markets C) derivative exchange markets. D) financial markets. 2) Typically, increasing interest rates A) discourages individuals from saving. B) discourages corporate investments. C) encourages corporate expansion. D) encourages corporate borrowing. E) none of the above. 3) Every financial market performs the following function: A) It determines the level of interest rates. B) It allows common stock to be traded. C) It allows loans to be made. D) It channels funds from lenders-savers to borrowers-spenders. for the 4) Securities are for the person who buys them, but individual/firm that sells them. A) assets; liabilities B) liabilities, assets C) income: liabilities D) liabilities, expenses

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