6. A customer wishes to sell stock they own and comes to a dealer. Which of the following would a securities dealer engage in?

abuying the securities and adding them to their own inventory

blocating a buyer for their client.

c.issuing the stock to the public.

d.loaning money to the client.

8.All but one of the following is a comparative advantage of financial intermediaries:

A exploit moral hazard in lending relationships.

B ability to achieve economies of scale.

C ability to reduce transaction costs.

D ability to reduce information asymmetry.

14.The adverse selection problem in lending occurs

A when information costs are low.

B when more risky borrowers than safe borrowers seek a loan.

C when a borrower engages in riskier activity after a loan is made.

D bankers refuse to make a loan to a lender.

15.The moral hazard problem in lending occurs

A when information costs are low.

B when more risky borrowers than safe borrowers seek a loan.

C when a borrower engages in riskier activity after a loan is made.

D bankers refuse to make a loan to a lender.

16.Second Security Bank accepts ten 6 month deposits of $5,000 each and uses the money to make a 6 month $50,000 loan to a business.This is an example of

A maturity intermediation

B denomination intermediation

C currency transformation

D credit risk diversification

29.Thrift institutions include

A commercial banks.

B pension funds.

C federal agencies.

D savings associations.

30.A conditional contract granting its holder the right to buy assets in the future is a:

A put.

B forward contract.

C futures contract.

D call.