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:

Education

The process of receiving or giving systematic instruction, especially at a school or university.

Social Exchange Theory

A psychological and sociological theory that explains social change and stability as a process of negotiated exchanges between parties.

Social Interaction

The process by which individuals act and react in relation to others in a societal context.

Rational Balancing

The process of making decisions by weighing the benefits and costs of various options in a logical and analytical manner.