5 Questions
Which of the following functions of money encourages specialization in the production of goods and services?
Medium of exchange
According to the liquidity premium theory of the term structure of interest rates, what is the key assumption about bonds of different maturities?
They are perfect substitutes
Which monetary asset is likely to be the least liquid?
Funds held as certificate of deposits
Which of the following is NOT a financial intermediary?
A government treasury
What determines the amount of dividends paid to stock owners?
The company's performance
Test your knowledge of the financial system and money functions with this quiz. Explore the link to study for your final exam and enhance your understanding of money transfer, financial securities, and the role of money in encouraging specialization in production.
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