Exam 2: An Overview of the Financial System

________ institutions are financial intermediaries that acquire funds at periodic intervals on a contractual basis.

In a(n) ________ market, dealers in different locations buy and sell securities to anyone who comes to them and is willing to accept their prices.

The time and money spent in carrying out financial transactions are called

________ are short-term loans in which Treasury bills serve as collateral.

Equity instruments are traded in the ________ market.

The primary assets of a finance company are

Thrift institutions include

Reducing risk through the purchase of assets whose returns do not always move together is

An important function of secondary markets is to

Adverse selection is a problem associated with equity and debt contracts arising from

A goal of the Securities and Exchange Commission is to reduce problems arising from

Which of the following is a long-term financial instrument?

Which of the following benefit directly from any increase in the corporation's profitability?

Which of the following financial intermediaries is not a depository institution?

The process of indirect finance using financial intermediaries is called

When secondary market buyers and sellers of securities meet in one central location to conduct trades the market is called a(n)

Which of the following is not a contractual savings institution?

Studies of the major developed countries show that when businesses go looking for funds to finance their activities they usually obtain these funds from

The British Banker's Association average of interbank rates for dollar deposits in the London market is called the

Financial intermediaries provide customers with liquidity services. Liquidity services