Exam 2: An Overview of the Financial System

Which of the following is a depository institution?

Conflicts of interest are a type of ________ problem that can happen when an institution provides multiple services.

Which of the following instruments is NOT traded in a money market?

Which of the following can be described as involving indirect finance?

An important feature of money market mutual fund shares is

In the United States,loans from ________ are far ________ important for corporate finance than are securities markets.

Banks can lower the cost of information production by applying one information resource to many different services. This process is called

An important source of short-term funds for commercial banks are ________ which can be resold on the secondary market.

Bonds issued by state and local governments are called ________ bonds.

The most liquid securities traded in the capital market are

The countries that have made the least use of securities markets are ________ and ________;in these two countries finance from financial intermediaries has been almost ten times greater than that from securities markets.

The primary liabilities of depository institutions are

Collateral is ________ the lender receives if the borrower does not pay back the loan.

Thrift institutions include

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

U)S. Treasury bills are considered the safest of all money market instruments because there is a low probability of

If Volkswagen,a German company,sells a euro-denominated bond in London,the bond is a

The problem created by asymmetric information before the transaction occurs is called ________,while the problem created after the transaction occurs is called ________.

The primary liabilities of a commercial bank are

The process of indirect finance using financial intermediaries is called