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Introduction To Macro_FIN-3AB_20251

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

When the central bank changes the policy interest rate, its primary aim is to:

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

Which is NOT a function of the financial system?

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

Capital markets differ from money markets because they:

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

The primary role of financial intermediaries (e.g., banks, insurance companies) is to:

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

When a financial institution promotes mutual funds using celebrity endorsements, this mainly targets:

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

Investing in new machinery by a manufacturing company is considered:

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

According to the risk-return tradeoff, investors who seek higher returns must accept

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

Which factor most reduces the real value of savings if nominal interest rates are fixed?

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

When banks advertise “higher interest savings accounts”, this is an example of:

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LG.1. and LO.1.1. Saving, Investment and Financial Systems

The main motive for households to save money is:

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