Which of the following statements is FALSE?A.In a world without FIs, the level of fund flows between household savers and the corporate sector is likely to be low.B.In a world without FIs, the users of corporate funds in the economy would have to directly approach the household savers of funds in order to satisfy their borrowing needs.C.Households can only be the savers or the providers of funds if they consume less than they could earn.D.Households are often averse to directly investing in corporate securities because of three types of costs: monitoring cost, liquidity costs, and interest rate risk.E.The long-term nature of corporate equity and debt securities would likely eliminate at least a portion of those households willing to lend money.

In a world without financial institutions, the fund flows between households and corporations are likely to be low becauseA.households tend to prefer shorter, more liquid securities.B.households are able to monitor the activities of the corporation more closely than financial institutions.C.households tend to prefer direct investments in corporate securities.D.the securities issued by financial institutions are more attractive to households than the securities issued by corporations. E.households are less likely to face price risk when corporate securities are sold.

Which of the following statements is TRUE?Group of answer choicesYour expenditures are the money you earn.The money you earn should be greater than your income.Your expenditures should be less than the money you put into your account.All of the above

Which of the following is not a financial resource for a household?WagesLoansRetained earningsDividend on investment

Which of the following is NOT true about the borrowings of IMF?Select one:a.The IMF may seek the amount it needs in any currency.b.The IMF may seek the amount it needs from official entities.c.The IMF may seek the amount it needs from private sources.d.None of the above

Which of the following is not a means of financing government spendingGroup of answer choicesBorrow directly from the central bankRaise the income tax rateIssue securities or debt to investors and the marketIncreasing transfer payments to low-income individuals