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    Securities of corporations,financial intermediary,financial

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    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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    https://brainmass.com/business/valuing-securities/securities-of-corporations-financial-intermediary-financial-377258

    Solution Preview

    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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