Which of the Following Statements Best Describes the Economist's View

question 1

Multiple Choice

Which of the following statements best describes the economist's view of finance and the financial system?

• A)The financial system is very important to the functioning of the economy,and the tools of finance are often helpful to us as individuals when we find ourselves making certain decisions.
• B)The financial system,while interesting,is not very important to the functioning of the economy;however,the tools of finance are often helpful to us as individuals when we find ourselves making certain decisions.
• C)The financial system is very important to the functioning of the economy;however,the tools of finance are not particularly helpful to us as individuals since we seldom make decisions for which those tools are useful.
• D)The field of finance is intimately concerned with the financial system and the tools of finance,and financial economists see great importance in them;however,the "mainstream" economist sees little value in studying financial markets or the tools of finance.

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Definitions:

Financial Position Valuations

Assessments that determine the value of a company's assets, liabilities, and equity at a particular time, reflecting its financial health.

Average

A numerical value derived from the sum of several quantities divided by the number of quantities.

Goods Available

The total inventory that a business has ready for sale, including both existing inventory and newly acquired goods.