1) ____________ are examples of financial intermediaries.

Select one:

a. Commercial banks b. Insurance companies c. Investment companies d. All of the above

2) True or False? In an efficient market, information is free.

Select one: True False

3) If interest rates increase 3 percent and the average duration of a banks $100 million of assets is 4 years, the value of those assets will fall:

Select one: a. $3.000.000 b. $4.000.000 c. $1.000.000 d. $12.000.000

4) True or False? Yield to Maturity is always positive.

Select one: True False

5) The purpose of financial markets is to:

Select one: a. increase the price of common stocks. b. lower the yield on bonds. c. allocate savings efficiently. d. control inflation.