1. Explain in plain English what financial intermediation is. Why is it important? 2. Describe what is meant by asymmetric information and define two type of informational problems resulting from it. 3. Provide examples of each adverse selection and moral hazard in equity and debt markets. 4. Describe how risk sharing is achieved by financial intermediaries and provide examples for how this is achieved. 5. Describe the concept of liquidity with respect to an asset. Be able to rank assets in order of their liquidity