1. The purchaser of a bond is a A) borrower. B) debtor. &n

1. The purchaser of a bond is a

A) borrower.

B) debtor.

C) saver.

D) not worried about market risk.

2. Financial intermediaries pool the funds of

A) a few large net savers and make loans to many (relatively speaking) net borrowers.

B) many small net savers and make loans to a few (relatively speaking) large net borrowers.

C) many small net savers and make loans to many (relatively speaking) net borrowers.

D) a few large net savers and make loans to a few (relatively speaking) large net borrowers.

3. Which of the following rankings of external funds options for firms is correctly listed from the least important to

the most important?

A) Stock issues, bond issues, loans from financial institutions

B) Bond issues, stock issues, loans from financial institutions

C) Loans from financial institutions, stock issues, bond issues

D) Loans from financial institutions, bond issues, stock issues

4. Liquidity

A) is a characteristic of money, and of no other asset.

B) is the best available measure of the riskiness of an asset.

C) has declined for most financial assets over the last 30 years.

D) is created by secondary markets.

Solutions

Expert Solution

Rahul Sunny answered 9 months ago

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