The field of finance primarily studies
a. how society manages its scarce resources.
b. the implications of time and risk for allocating resources over time.
c. firms' decisions concerning how much to produce and what price to charge.
d. how society can reduce market risk.
b
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If households in the economy decide to take money out of checking account deposits and put this money into savings accounts, this will initially
A) decrease M1 and increase M2. B) decrease M1 and decrease M2. C) decrease M1 and not change M2. D) increase M1 and decrease M2.
A stock market
A. guarantees that a seller of a stock will get the price at which the stock was purchased. B. is used only to sell new stock issues from corporations and not to transfer existing stocks. C. is used only to sell stocks, not to buy stocks. D. gives an individual a chance to invest in stocks without committing funds for long periods of time.