PayslQuestion 20Which one of the following is an incorrect statement about US financial system?O Saving and investment are important determinants of long run growth in GDP and living standards.O The primary advantage of mutual funds is that they allow people with small amounts of money to diversity their holdingsO Financial Intermediaries are financial institutions through which savers can directly provide funds to borrowersO The institutions that make up this system-the bond market, the stock market, banks, and mutual funds-- have the role of coordinating the economy'ssaving and investment.Question 21Which one of the folawing is an incorrect statement about the history of The US Central Bank?O In 1836. President Andrew Jackson closed the Second Bank of the United States (SBUS) because of his deep distrust of financial elites. It led to a period ofrapid monetary expansion and inflation, which was soon folowed by financial panics in 1837 and 1839 and a severe recessionO The Free Banking and the following National Banking Eras were periods of preat financial stability. While Canada had twelve financial crises since 1840, theUS. for example, has had none.O The First Bank of the United States (FBUS) is usually regarded as the country's first central bank opening in 1791 with a 20-year charter. The Federalistadministrations of Washington and Adams had yielded to the anti Federalist administrations of Jetterson and Madson, Most of Congress wan atso antsFederalist. so the FBUS charter was not renewed.O Unlike the FBUS and the 5BUS. the Fed charter is permanent, and commercial banks are the shareholders instead of private investons

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Question 20 Which one of the following is an incorrect statement about US financial system? Saving and investment are important determinants of long run growth in GDP and living standards. The primary advantage of mutual funds is that they allow people with small amounts of money to diversity their holdings Financial Intermediaries are financial institutions through which savers can directly provide funds to borrowers O The institutions that make up this system-the bond market, the stock market, banks, and mutual funds-have the role of coordinating the economy's saving and investment.

Question 20 Which one of the following is an incorrect statement about US financial system? Saving and investment are important determinants of long run growth in GDP and living standards. The primary advantage of mutual funds is that they allow people with small amounts of money to diversity their holdings Financial Intermediaries are financial institutions through which savers can directly provide funds to borrowers O The institutions that make up this system-the bond market, the stock market, banks, and mutual funds-have the role of coordinating the economy's saving and investment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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