1a. Money market securities

		are short term.
		are highly marketable.
		are generally very low risk.
		are highly marketable and are generally very low risk.
		All of the options.

1b.

The ____________ refers to the potential conflict between management and shareholders.

		agency problem
		diversification problem
		liquidity problem
		solvency problem
		regulatory problem

1c.

Which of the following are mechanisms that have evolved to mitigate potential agency problems?

I) Using the firm's stock options for compensation

II) Hiring bickering family members as corporate spies

III) Boards of directors forcing out underperforming management

IV) Security analysts monitoring the firm closely

V) Takeover threats

		II and V
		I, III, and IV
		I, III, IV, and V
		III, IV, and V
		I, III, and V

1d.

Corporate shareholders are best protected from incompetent management decisions by

		the ability to engage in proxy fights.
		management's control of pecuniary rewards.
		the ability to call shareholder meetings.
		the threat of takeover by other firms.
		one-share/one-vote election rules.

1e.

The money market is a subsector of the

		commodity market.
		capital market.
		derivatives market.
		equity market.
		None of the options are correct.