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Securities of corporations,financial intermediary,financial

10. A corporation acquires new funds only when its securities are sold:
in the secondary market by an investment bank
in the primary market by an investment bank
in the secondary market by a stock exchange broker
in the secondary market by a commercial bank

11. Which of the following is not considered an example of a financial intermediary?
commercial banks
the Federal Reserve
mutual funds
insurance companies
saving and loan associations

12. The presence of ___________ in financial markets leads to adverse selection and
moral hazard problems that interfere with the efficient function of financial markets.
asymmetric information
noncollateralized risk
reinvestment risk
b-l-t sandwiches
none of the above

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10. A corporation acquires new funds only when its securities are sold:
Answer: in the primary market by an investment bank

11. Which of ...

Solution Summary

This post solves three multiple choice problem on securities of corporations, financial intermediary, financial market information . It could be a good practice for a exam.

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