A derivative B. secondary C. primary D. monetary instruments alternative mechanisms of fundraising financing A. direct, indirect

A. No correct answer
B. Yes, in all cases
C. No, the bank will not cover any losses
D. The bank will cover losses together with all other partners
81) Financial markets and institutions
A) do all ot the above
B) affect the profits of businesses.
с) affect the types of goods and services produced in an economy.
D) involve the movement of huge quantities of money.
82) Financial market activities affect
A) all of the above.
B) spending decisions by individuals and business firms.
C) the economv's location in the business cvcle
D) personal wealth.
83) The bond markets are important because
A) they are the markets where interest rates are determined
B) they are easily the most widely followed financial markets in the United States.

C) they are the markets where foreign exchange rates are determined.

D) all of the above.
84) Interest rates are important to financial institutions since an interest rate increase cost of acquiring funds and the income from assets

1. 
   increases: increases
   
2. 
   decreases; decreases
   

C) decreases; increases
D) increases: decreases
85) Typically, increasing interest rates
A). discourages corporate investments
B) discourages individuals from saving
C) encourages corporate expansion.
D) encourages corporate borrowing.
86) Compared to interest rates on long-term U.S. government bonds, interest rates on fluctuate more and are lower on average
A) three-month Treasury bills
В) low-quality corporate bonds
C) high-quality corporate bonds
D medium-quality corporate bonds
87) The stock market is important because
A) it is the most widely followed financial market in the United States
B) ) it is where interest rates are determined.
C) it is where foreign exchange rates are determined.
D) all of the above.
Answer B
88) Stock prices since the 1980s have been