Question 1: A corporation acquires new funds only when its securities are sold:
- in the secondary market by an investment bank
- in the primary market by an investment bank
- in the secondary market by a stock exchange broker
- in the secondary market by a commercial bank
Question 2: Which of the following is not considered an example of a financial intermediary?
- commercial banks
- the Federal Reserve
- mutual funds
- insurance companies
- saving and loan associations
Question 3: The presence of ___________ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient function of financial markets.
- asymmetric information
- noncollateralized risk
- reinvestment risk
- b-l-t sandwiches
- none of the above