Exam 2: An Overview of the Financial System

An example of economies of scale in the provision of financial services is

One reason for the extraordinary growth of foreign financial markets is

The primary assets of a pension fund are

U.S.dollar deposits in foreign banks outside the U.S.or in foreign branches of U.S.banks are called

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

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

If Toyota sells a $1000 bond in the United States,the bond is a

Which of the following is a depository institution?

An investment bank purchases securities from a corporation at a predetermined price and then resells them in the market.This process is called

A corporation acquires new funds only when its securities are sold in the

An important function of secondary markets is to

When I purchase ________,I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.

Bonds that are sold in a foreign country and are denominated in the country's currency in which they are sold are known as

The higher a security's price in the secondary market the ________ funds a firm can raise by selling securities in the ________ market.

Which of the following instruments are traded in a money market?

Bonds that are sold in a foreign country and are denominated in a currency other than that of the country in which it is sold are known as

The process of asset transformation refers to the conversion of

Which of the following are short-term financial instruments?

How do regulators help to ensure the soundness of financial intermediaries?

Distinguish between direct finance and indirect finance.Which of these is the most important source of funds for corporations in the United States?