1.1 Why Study Financial Markets?

1) Financial markets promote economic efficiency by

A) channeling funds from investors to savers.

B) creating inflation.

C) channeling funds from savers to investors.

D) reducing investment.

2) Financial markets promote greater economic efficiency by channeling funds from ________ to ________.

A) investors; savers

B) borrowers; savers

C) savers; borrowers

D) savers; lenders

3) Well functioning financial markets promote

A) inflation.

B) deflation.

C) unemployment.

D) growth.