Financial Markets and Institutions
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Questions and Answers

Which of the following is true about financial markets and institutions?

  • They involve the movement of small quantities of money.
  • They affect the profits of businesses. (correct)
  • They do not affect the types of goods and services produced in an economy.
  • They have no impact on business profits.

How do financial markets and institutions impact businesses?

  • They affect the profits of businesses. (correct)
  • They have no impact on business profits.
  • They only affect the types of goods and services produced in an economy.
  • They do not involve the movement of money.

What is the relationship between financial markets and institutions and the types of goods and services produced in an economy?

  • They have no impact on the types of goods and services produced in an economy. (correct)
  • They only involve the movement of small quantities of money.
  • They affect the types of goods and services produced in an economy.
  • They affect the profits of businesses.

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