Podcast
Questions and Answers
What is a characteristic of depository institutions according to the text?
What is a characteristic of depository institutions according to the text?
What characterized the New Financial Environment (NFE)?
What characterized the New Financial Environment (NFE)?
What type of banks were set up in the Old Financial Environment (OFE)?
What type of banks were set up in the Old Financial Environment (OFE)?
Which type of financial institution falls under non-depository institutions category?
Which type of financial institution falls under non-depository institutions category?
Signup and view all the answers
What is the main risk associated with financial intermediation according to the text?
What is the main risk associated with financial intermediation according to the text?
Signup and view all the answers
What differentiates the activities in the Old Financial Environment from the New Financial Environment?
What differentiates the activities in the Old Financial Environment from the New Financial Environment?
Signup and view all the answers
What is the primary role of financial intermediaries?
What is the primary role of financial intermediaries?
Signup and view all the answers
How do financial intermediaries differ from market specialists or brokers?
How do financial intermediaries differ from market specialists or brokers?
Signup and view all the answers
What distinguishes direct finance from indirect finance?
What distinguishes direct finance from indirect finance?
Signup and view all the answers
When a bank issues checking accounts or time deposit certificates to depositors, what type of finance is it considered?
When a bank issues checking accounts or time deposit certificates to depositors, what type of finance is it considered?
Signup and view all the answers
Which financial institution may underwrite certain original issues according to the text?
Which financial institution may underwrite certain original issues according to the text?
Signup and view all the answers
Why do financial intermediaries issue their own financial instruments called secondary securities?
Why do financial intermediaries issue their own financial instruments called secondary securities?
Signup and view all the answers
What type of financial intermediaries are market specialists?
What type of financial intermediaries are market specialists?
Signup and view all the answers
In indirect finance, what is the role of financial intermediaries?
In indirect finance, what is the role of financial intermediaries?
Signup and view all the answers
What distinguishes old simple financial intermediaries from modern ones?
What distinguishes old simple financial intermediaries from modern ones?
Signup and view all the answers
How do market specialists differ from traditional financial intermediaries?
How do market specialists differ from traditional financial intermediaries?
Signup and view all the answers
What is the primary function of market specialists?
What is the primary function of market specialists?
Signup and view all the answers
How does indirect finance differ from direct finance?
How does indirect finance differ from direct finance?
Signup and view all the answers