33. Juan purchases automobile insurance; the insurance contract is a: A. financial instrument. B. form of money C. transfer of risk from the insurance company to Juan. D. financial intermediary 34. Which of the following statements is most correct? A. When a risk is difficult to predict, financial instruments are created to transfer these risks. B. Financial instruments are created to transfer risks that are relatively easy to predict. C. Financial instruments require certainty of an event to be able to transfer risk. D. Financial instruments eliminate the risk from uncertainty, they do not transfer it. 35. More detailed financial instruments tend to be: A. less costly because all possible contingencies are covered B. more costly because it will cost more to create. C. more desirable than less detailed ones, no matter what the price. D. less costly because they can be standardized more easily. 36. Standardization of financial instruments has occurred as a result of A. the rule of 70. B. the law of demand. C. economies of scale. D. the law of supply 37. The information concerning the issuer of a financial instrument: A. needs to be complete and closely monitored by the buyers of the instrument for change. B. is somewhat non-standardized to minimize the cost of the instrument. C. is usually standardized to the essential information required by the buyers. D. is closely monitored by the buyers of these instruments for change. 38. Asymmetric information in financial markets is a potential problem usually resulting from: A. borrowers having more information than the lenders. B. lenders having more information than borrowers C. the fact that people are basically dishonest. D. the uncertainty about Federal Reserve monetary policy