Economics of Money, Banking and Financial Markets 12th edition by Frederic Mishkin Test bank
AACSB: Application of Knowledge
16) From 1980-1985, the dollar strengthened in value against other currencies. Who was helped and who was hurt by this strong dollar?
Answer: American consumers benefitted because imports were cheaper and consumers could purchase more. American businesses and workers in those businesses were hurt as domestic and foreign sales of American products fell.
Ques Status: Previous Edition
AACSB: Reflective Thinking
1.5 Money, Banking, and Financial Markets and Your Career
1) Students studying money, banking, and financial markets will learn
A) critical thinking skills that will be useful in all careers.
B) how to time the market.
C) stock market tips.
D) nothing of practical value.
Answer: A
Ques Status: New
AACSB: Application of Knowledge
1.6 How We Will Study Money, Banking, and Financial Markets
1) The basic concepts used in the analytic framework of this text include all of the following EXCEPT
A) the not-for-profit nature of most financial institutions.
B) a basic supply and demand analysis to explain the behavior of financial markets.
C) an approach to financial structure based on transaction costs and asymmetric information.
D) the concept of equilibrium.
Answer: A
Ques Status: Previous Edition
AACSB: Application of Knowledge
2) Using a unified analytic framework to present the information in the text keeps the knowledge
A) focused on theories that have little to do with actual behavior.
B) theoretical and uninteresting.
C) abstract and not applicable to real life.
D) from becoming obsolete.
Answer: D
Ques Status: Previous Edition
AACSB: Application of Knowledge
1.7 Appendix: Defining Aggregate Output, Income, the Price Level, and the Inflation Rate
1) The most comprehensive measure of aggregate output is
A) gross domestic product.
B) net national product.
C) the stock value of the industrial 500.
D) national income.
Answer: A
Ques Status: Previous Edition
AACSB: Application of Knowledge
2) The gross domestic product is the
A) the value of all wealth in an economy.
B) the value of all goods and services sold to other nations in a year.
C) the market value of all final goods and services produced in an economy in a year.
D) the market value of all intermediate goods and services produced in an economy in a year.
Answer: C
Ques Status: Previous Edition
AACSB: Application of Knowledge
3) Which of the following items are NOT counted in U.S. GDP?
A) your purchase of a new Ford Mustang
B) your purchase of new tires for your old car
C) GM's purchase of tires for new cars
D) a foreign consumer's purchase of a new Ford Mustang
Answer: C
Ques Status: Previous Edition
AACSB: Reflective Thinking
4) If an economy has aggregate output of $20 trillion, then aggregate income is
A) $10 trillion.
B) $20 trillion.
C) $30 trillion.
D) $40 trillion.
Answer: B
Ques Status: Previous Edition
AACSB: Analytical Thinking
5) When the total value of final goods and services is calculated using current prices, the resulting measure is referred to as
A) real GDP.