Mishkin Quiz 14  On-Line Quiz     1. The purpose of a financial
sector is:        to minimize the payments firms make to state
and local governments.       to maximize the payments firms make
to state and local governments.       to channel funds away from
households and firms with surplus funds.       to channel monies
into socially acceptable causes.    2. Economic agents can raise
money capital by:        repaying a loan.       providing a
subsidy.       issuing liabilities.       paying taxes.    3.
The most important source of funds for nonfinancial businesses
is ________.        financial intermediaries.       insurance
companies.       hedge funds.       state and local governments.
4. Mutual funds ________.        accept deposits and issue loans
sell shares and buy financial instruments       are a special
type of commercial bank       issue policies and receive
premiums    5. If one economic agent possesses more information
that their fellow transactor:        economic transactions
cannot oc