Podcast
Questions and Answers
Why do financial intermediaries (banks) exist?
Why do financial intermediaries (banks) exist?
- To indirectly allocate resources to those with need and productive use (correct)
- To diversify risk through asymmetric information
- To directly allocate resources via stock/bond markets
- To reduce transaction costs through expertise
What is one of the issues with investing related to asymmetric information?
What is one of the issues with investing related to asymmetric information?
- Ex-post: evaluating the potential for market growth
- Ex-ante: determining if a counterparty will repay (correct)
- Ex-ante: predicting future market trends
- Ex-post: analyzing past market performance
How can financial intermediaries reduce transaction costs?
How can financial intermediaries reduce transaction costs?
- By diversifying risk through asymmetric information
- By offering standardized contracts and conditions (correct)
- By predicting future market trends
- By directly allocating resources through stock/bond markets
What indicates the existence of financial intermediaries like banks?
What indicates the existence of financial intermediaries like banks?
What are the main sources of funding for banks?
What are the main sources of funding for banks?
Where does the income for banks come from?
Where does the income for banks come from?
What are the types of banks that exist?
What are the types of banks that exist?
What are the leading banks in Belgium?
What are the leading banks in Belgium?
According to the Financial Stability Board (FSB), what are the key aspects of financial intermediation?
According to the Financial Stability Board (FSB), what are the key aspects of financial intermediation?
What risks do banks run according to the Financial Stability Board?
What risks do banks run according to the Financial Stability Board?
What are the main assets of banks?
What are the main assets of banks?
Which act allowed universal banking in the EU since 1989 and in the US since 1999?
Which act allowed universal banking in the EU since 1989 and in the US since 1999?
What do investment banks/brokerages mainly focus on?
What do investment banks/brokerages mainly focus on?
What is NOT a type of bank mentioned in the text?
What is NOT a type of bank mentioned in the text?
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