Exam 8: An Economic Analysis of Financial Structure

As a source of funds for nonfinancial businesses, stocks are relatively more important in

The high growth rate in China in the last twenty years has similarities to the high growth rate of ________ during the 1950s and 1960s.

Which of the following is not one of the eight basic puzzles about financial structure?

Of the following sources of external finance for American nonfinancial businesses, the least important is

Credit card debt is

A ________ is a provision that restricts or specifies certain activities that a borrower can engage in.

The recent Enron and Tyco scandals are an example of

Which of the following is not a benefit to an individual purchasing a mutual fund?

The current structure of financial markets can be best understood as the result of attempts by financial market participants to

The free-rider problem occurs because

Because of the adverse selection problem,

The predominant form of household debt is

Of the four sources of external funding for nonfinancial businesses, the least often used in the U.S. is

High net worth helps to diminish the problem of moral hazard problem by

Government regulations require publicly traded firms to provide information, reducing

The concept of adverse selection helps to explain

Financial intermediaries' low transaction costs allow them to provide ________ services that make it easier for customers to conduct transactions.

One way of describing the solution that high net worth provides to the moral hazard problem is to say that it

A venture capital firm protects its equity investment from moral hazard through which of the following means?

A clause in a mortgage loan contract requiring the borrower to purchase homeowner's insurance is an example of a