Podcast
Questions and Answers
What are securities to the individuals or firms that issue them?
What are securities to the individuals or firms that issue them?
Which of the following is an example of a direct finance instrument?
Which of the following is an example of a direct finance instrument?
What role do financial intermediaries play in indirect finance?
What role do financial intermediaries play in indirect finance?
What is the primary route for moving funds from lenders to borrowers?
What is the primary route for moving funds from lenders to borrowers?
Signup and view all the answers
Which type of market involves the selling of new issues of securities to initial buyers by the borrowing entity?
Which type of market involves the selling of new issues of securities to initial buyers by the borrowing entity?
Signup and view all the answers
What defines the maturity of a debt instrument?
What defines the maturity of a debt instrument?
Signup and view all the answers
What is the main difference between money market and capital market?
What is the main difference between money market and capital market?
Signup and view all the answers
How do financial intermediaries help in reducing transaction costs?
How do financial intermediaries help in reducing transaction costs?
Signup and view all the answers
Which concept refers to turning risky assets into safer assets for investors?
Which concept refers to turning risky assets into safer assets for investors?
Signup and view all the answers
What problem is created by asymmetric information before a financial transaction occurs?
What problem is created by asymmetric information before a financial transaction occurs?
Signup and view all the answers