Podcast
Questions and Answers
What is the primary source of funds for commercial banks?
What is the primary source of funds for commercial banks?
- Corporate bonds
- Employer contributions
- Premiums from policies
- Deposits (correct)
Which type of financial intermediary primarily uses premiums from policies as their source of funds?
Which type of financial intermediary primarily uses premiums from policies as their source of funds?
- Savings and loan associations
- Credit unions
- Life insurance companies (correct)
- Pension funds
What are municipalities likely to finance through the use of their assets?
What are municipalities likely to finance through the use of their assets?
- Home equity loans
- Corporate bonds
- Municipal bonds (correct)
- U.S. government securities
What type of loans are primarily associated with savings and loan associations?
What type of loans are primarily associated with savings and loan associations?
Which financial intermediary is most likely to use employer and employee contributions as their main source of funds?
Which financial intermediary is most likely to use employer and employee contributions as their main source of funds?
What is the primary purpose of the Securities and Exchange Commission (SEC)?
What is the primary purpose of the Securities and Exchange Commission (SEC)?
Which regulatory agency is responsible for regulating futures market exchanges?
Which regulatory agency is responsible for regulating futures market exchanges?
What type of institutions does the Office of the Comptroller of the Currency primarily regulate?
What type of institutions does the Office of the Comptroller of the Currency primarily regulate?
What restrictions does the National Credit Union Administration (NCUA) impose on credit unions?
What restrictions does the National Credit Union Administration (NCUA) impose on credit unions?
Which of the following best describes the regulations enforced by the SEC regarding insider trading?
Which of the following best describes the regulations enforced by the SEC regarding insider trading?
What distinguishes direct finance from indirect finance?
What distinguishes direct finance from indirect finance?
Which of the following best describes the role of financial markets?
Which of the following best describes the role of financial markets?
What type of market facilitates the initial issuance of securities?
What type of market facilitates the initial issuance of securities?
Which of the following is NOT a function of financial markets?
Which of the following is NOT a function of financial markets?
What are the primary participants in secondary markets?
What are the primary participants in secondary markets?
Which type of financial instrument is characterized by guarantees of fixed payments over time?
Which type of financial instrument is characterized by guarantees of fixed payments over time?
How do financial intermediaries utilize risk sharing?
How do financial intermediaries utilize risk sharing?
What element is critical to ensuring that financial markets function effectively?
What element is critical to ensuring that financial markets function effectively?
What are the primary assets of finance companies?
What are the primary assets of finance companies?
Which type of intermediary primarily uses shares as their primary liability?
Which type of intermediary primarily uses shares as their primary liability?
Which financial intermediary had the largest value of assets in 2016?
Which financial intermediary had the largest value of assets in 2016?
Which of the following is NOT an asset typically associated with hedge funds?
Which of the following is NOT an asset typically associated with hedge funds?
What type of financial intermediary utilizes commercial paper as a primary liability?
What type of financial intermediary utilizes commercial paper as a primary liability?
In 1990, what was the value of assets held by life insurance companies?
In 1990, what was the value of assets held by life insurance companies?
Which type of intermediary primarily uses stocks and bonds as assets?
Which type of intermediary primarily uses stocks and bonds as assets?
Which financial intermediary had the smallest asset value in 2016?
Which financial intermediary had the smallest asset value in 2016?
What is the main purpose of financial intermediaries in the context of indirect finance?
What is the main purpose of financial intermediaries in the context of indirect finance?
Which type of loans is least likely to be affected by asymmetric information problems?
Which type of loans is least likely to be affected by asymmetric information problems?
What characterizes a Eurobond?
What characterizes a Eurobond?
Which of the following best describes 'moral hazard' as it relates to financial transactions?
Which of the following best describes 'moral hazard' as it relates to financial transactions?
Among the following, which financial instrument typically involves the least risk for investors?
Among the following, which financial instrument typically involves the least risk for investors?
Which of the following best illustrates the concept of 'risk sharing' in financial intermediation?
Which of the following best illustrates the concept of 'risk sharing' in financial intermediation?
What role do world stock markets play in relation to U.S. corporations?
What role do world stock markets play in relation to U.S. corporations?
Which of the following is NOT a benefit provided by financial intermediaries?
Which of the following is NOT a benefit provided by financial intermediaries?
