1.

What caused the decrease in asset-backed securities issues between 2001 and 2017?

Multiple Choice

• Inefficiency in foreign markets

• Liquidity demands by shareholders

• Sale of new derivatives in foreign countries

• Loss of investor confidence

2.

Security markets provide liquidity:

Multiple Choice

• by allowing corporations to raise funds by selling new issues.

• by providing the widest range of information to investors.

• by allowing investors access to low-risk investments.

• by maintaining confidence in corporate governance of listed firms.