Types of Financial Intermediaries
10 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main role of brokers in the financial system?

  • Providing investment advice to corporate clients
  • Trading directly with clients
  • Arranging initial public offerings
  • Finding traders willing to take the other side of their clients' orders (correct)
  • Why are large orders hard to fill according to the text?

  • Because brokers are not interested in handling large orders
  • Because large orders generally trade at a discount to the current market price
  • Because large traders are unwilling to expose their orders to the public
  • Because large orders generally trade at a premium to the current market price (correct)
  • In what way do exchanges act as brokers according to the text?

  • By directly negotiating trades between traders
  • By providing investment advice
  • By specializing in mergers and acquisitions
  • By arranging trades based on orders submitted by brokers and dealers (correct)
  • What is a primary function of investment banks' corporate finance divisions?

    <p>Helping companies finance their business through issuing securities</p> Signup and view all the answers

    What distinguishes block brokers from regular brokers?

    <p>Block brokers manage exposure of large orders carefully</p> Signup and view all the answers

    Why are financial intermediaries essential to well-functioning financial systems?

    <p>To provide efficient solutions for clients' financial problems</p> Signup and view all the answers

    What is the primary role of financial intermediaries?

    <p>To help entities achieve their financial goals by providing efficient solutions</p> Signup and view all the answers

    How do financial intermediaries connect buyers to sellers?

    <p>By standing between buyers and sellers to help transfer capital and risk efficiently</p> Signup and view all the answers

    What distinguishes financial intermediaries from traditional banks in terms of services provided?

    <p>Specializing in facilitating capital and risk transfer between buyers and sellers</p> Signup and view all the answers

    How do financial intermediaries benefit buyers and sellers in financial markets?

    <p>By enabling trading without requiring direct knowledge of counterparty</p> Signup and view all the answers

    More Like This

    Types of Financial Intermediaries
    12 questions
    Financial Intermediaries Quiz
    42 questions

    Financial Intermediaries Quiz

    ForemostChalcedony5722 avatar
    ForemostChalcedony5722
    Use Quizgecko on...
    Browser
    Browser