Exam 2: The Financial System and the Level of Interest Rates

One aspect of deregulating the financial markets has been

The financial system's primary concern is funneling money from ________ to _________

Which types of individuals are able to participate in the direct financial market?

If a firm needs to finance a new corporate headquarters building, then it would most likely seek the funds in the

The elimination of small financial institutions is primarily a by-product of deregulating the financial markets.

A line of credit to a corporation is like _______ to an individual.

If a firm sells common stock to the public for the very first time, it is known as ______________.

Which of the following stock exchange organizational forms has no physical location?

Stocks that are traded _____________ are typically those of smaller and lesser know firms.

The downside to a private placement transaction is that it does not require the fees and expenses associated with an SEC registration.

The general level of interest rates tends to follow

If the supply of loanable funds decreases relative to the demand for those funds, then we would expect

An economy with a large flow of funds requires

One of the main services offered by investment banks to companies is

In the United States, the real rate of interest is generally about

Money market instruments are generally issued by

The real rate of return can be justified, at a basic level, by

The presence of a financial market increases the marketability of a financial security by

Brokers are market specialists who do not bear risk.

Governments are the principal lender-savers in the economy.