1. Institutions that function to connect one individual's savings another's investment decisions is in summation called the
A. financial system
B. monetary system
C. banking system
D. FED
2. Bob buys 500 shares of stock issued by Creature Comforts Brewing. Creature Comforts brewing then use those funds to buy new machinery.
A. Bob and Creature Comforts are both saving
B. Bob are CC are both investing
C. Bob is investing. CC is saving
D. Bob is saving. CC is investing
3. Suppose the market interest rate for loanable funds is above the equilibrium level, this means the quantity of loanable funds:
A. demanded will exceed the quantity of loanable funds supplied and the interest rate will rise
B. supplied will exceed the quantity of loanable funds demanded and the interest rate will rise
C. demanded will exceed the quantity of loanable funds supplied and the interest rate will fall
D. supplied will exceed the quantity of loanable funds demanded and the interest rate will fall
4. Suppose that microwaves are part of the CPI market basket. Now suppose that the new microwaves come with new WiFi (quality upgrade), but the price of microwaves does not change. If the BLS actually adjusted the CPI for improvement in quality then other things equal,
A. the CPI will increase
B. the CPI will decrease
C. the CPI will stay the same
D. microwaves would be removed from the market basket