Finance Chapter 2 2 Who Was Responsible For The Financial

Topic: Types of financial institutions

54.

Who was responsible for the financial crisis of 2007-2009?

55.

Which one of the following funds provides a tax advantage to individual investors?

56.

A financial institution:

57.

Which type of financial institution generally does not accept deposits but does underwrite stock offerings?

58.

Which one of the following financial intermediaries has shown the greatest preference for investing in long-term financial

assets?

59.

Which one of these may provide a financial return to some investors while not providing any financial return to other

investors?

60.

Insurance companies can usually cover the claims of policyholders because:

61.

Which of the following is not typically considered a function of financial intermediaries?

62.

U.S. bonds and other debt securities are mostly held by:

63.

Approximately what percentage of U.S. corporate equities are held by households?

64.

Which of the following are major holders of corporate bonds?

65.

Which of the following is not a function of financial markets?

66.

Which one of these transports income forward in time?

67.

Which one of these assists in shifting an individual’s consumption forward in time?

68.

One reason suggesting that banks may be better than individuals at matching lenders to borrowers is that banks:

69.

Which one of the following is least liquid?

70.

Financial markets and intermediaries:

71.

Which of the following functions does not require financial markets?

72.

Liquidity is important to a mutual fund primarily because:

73.

Which one of the following is the biggest provider of payment mechanisms?

74.

Which of the following actions does not help reduce risk?

75.

Insurance companies primarily reduce an individual’s risk by:

76.

Which of the following information is not provided by the financial markets?

77.

A capital investment that generates a 10% rate of return is worthwhile if:

78.

The cost of capital:

79.

Excess cash held by a firm should be:

80.

One contributing factor to the 2007-2009 financial crisis was the structuring of mortgage loans with:

81.

The opportunity cost of capital:

82.

During the Financial Crisis of 2007-2009, the U.S. government bailed out all of the following firms except:

83.

If Apple Computer Inc. is used as the model, then new firms should expect to raise capital in which one of these orders? Start

with the first money raised.

84.

Which one of these parties cannot invest in a hedge fund?

85.

Which one of these enterprises generally acts as an underwriter for an initial public offering?

86.

Which of these institutions are not major investors in U.S. equities?

87.

Firms can often determine the price of any commodities they use in their production process by consulting the price quotes

provided by:

88.

How is the relationship between a bond‘s credit rating and its interest rate best defined?

89.

The financial crisis of 2007-2009 contributed to the largest sovereign default in history by which one of these countries?

90.

Which one of these was a contributing factor to the need for many foreign banks to seek aid from their governments as a

result of the financial crisis of 2007-2009?

91.

Which one of these was a major cause of the deep recession and severe unemployment throughout much of Europe that

followed the financial crisis of 2007-2009?

92.

Which one of these is generally a key difference between U.S. and foreign commercial banks?

Chapter 02 Test Bank – Static Summary