Exam 2: An Overview of the Financial System

An important feature of money market mutual fund shares is

The process of asset transformation refers to the conversion of

The primary assets of a pension fund are

Equity of U.S.companies can be purchased by

The process of indirect finance using financial intermediaries is called

Because these securities are more liquid and generally have smaller price fluctuations,corporations and banks use the ________ securities to earn interest on temporary surplus funds.

Which of the following do NOT provide charters?

Which of the following is a depository institution?

The primary assets of money market mutual funds are

A financial market in which only short-term debt instruments are traded is called the ________ market.

Typically,borrowers have superior information relative to lenders about the potential returns and risks associated with an investment project.The difference in information is called

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

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

Government regulations to reduce the possibility of financial panic include all of the following EXCEPT

The principal lender-savers are

An important function of secondary markets is to

If Microsoft sells a bond in London and it is denominated in dollars,the bond is a

With direct finance,funds are channeled through the financial market from the ________ directly to the ________.

________ are financial intermediaries that acquire funds by selling shares to many individuals and using the proceeds to purchase diversified portfolios of stocks and bonds.

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