Multiple Choice
Economies of scale
A) in the financial markets does not explain why financial intermediaries developed and have become such an important part of our financial structure.
B) can be used to an advantage by reducing transaction cost.
C) both A and B of the above.
D) neither A nor B of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q30: Issuing marketable securities is the primary way
Q31: Net worth<br>A) is the difference between current
Q32: What conflicts of interest can arise in
Q33: The authors' analysis of adverse selection indicates
Q34: Of the sources of external funds for
Q36: An audit certifies that<br>A) a firm's loans
Q37: Because of the adverse selection problem,<br>A) good
Q38: Due to criticisms of rating agencies following
Q39: Spinning is the practice of<br>A) investment banks
Q40: The pecking order hypothesis predicts that the