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20. Money market securities are typically expected to have aannualized return. Capial liquid. market securities are generally A) higher, less B) lower, more C) lower, less D) higher, more 21. Deficit spending units are also called A) lenders B) borrowers C) buyers of securities D) federal government. 22. A market that trades an agreement between two parties to exchange a standard quantity of an asset at a predetermined price on a specified date in the future is called alan A) secondary market B) primary market C) derivatives market D) money market E) capital market Households are increasingly likely to both directly parchase securities (perhaps via a broker) and also place some money with a bank or thrift to meet different needs. Match up the given 23. investors desire with the appropriate intermediary or direct security 1. Money likely to be needed within 6 months II. Money to be set aside for college in 10 years III. Money to provide supplemental retirement income IV. Money to be used to provide for children in the event of death 2. Insurer 3. Pension fund 4. Stocks or bonds A) 2,3,4, 1 B) 1,4, 2,3 C) 3, 2, 1,4 D) 1, 4,3,2 E) 4, 2, 1, 3 24. When the financial system has achieved a high degree of efficiency A) Borrowers are able to finance at the highest possible cost. B) Transaction and intermediation costs are low C) Surplus spending units are able to receive the lowest return on their savings. D) Investors will have a limited choice of financial investments