Question: Please provide the answer for the following multiple choice questions: 1) Financial markets have the basic function of A) getting people with funds to lend

Please provide the answer for the following multiple choice questions:

Please provide the answer for the following multiple choice questions: 1) Financial

1) Financial markets have the basic function of A) getting people with funds to lend together with people who want to borrow fund B) assuring that the swings in the business cycle are less pronounced. C) assuring that governments need never resort to printing money. D) providing a risk-free repository of spending power. 2) You can borrow $5000 to finance a new business venture. This new venture willg erate annual earnings of $251. The maximum interest rate that you would pay on th borrowed funds and still increase your income is A) 25%. B) 12.5% C) 10%. D) 596. 3) A liquid asset is A) an asset that can easily and quickly be sold to raise cash B) a share of an ocean resort. C) difficult to resell. D) always sold in an over-the-counter market. 4) For a commodity to function effectively as money it must be A) easily standardized, making it easy to ascertain its value. B) difficult to make change C) deteriorate quickly so that its supply does not become too large. D) hard to carry around. 5) If the price level doubles, the value of money A) doubles. B) more than doubles, due to scale economies. C) rises but does not double, due to diminishing returns. D) falls by 50 percent

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