1.When an agent has an incentive to behave in a way that is not in the best interest of the principal we call this?

A. a principal problem

B.a minimum agent problem

C.a minimum principal problem

D. an agency problem

2.Which kind of company is not involved in financial intermediation?

A. a bond rating agency

B. a mutual fund

C. a pension fund

D. A life insurance company

3.A loan made by a bank to an individual is a

A. liability for the bank

B. asset for the bank

C.assest for the borrower

D. liability for the depositor