8. Which of the following are primary markets? (Points : 2)

the New York Stock Exchange The U.S. government bond market The over-the-counter stock market the options market none of the above

Question 9.9. Which of the following can be described as involving indirect finance? (Points : 2)

A corporation takes out loans from a bank People buy shares in a mutual fund A corporation buys commercial paper in a secondary market All of the above would involve indirect finance None of the above would involve indirect finance

Question 10.10. The presence of ___________ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient function of financial markets. (Points : 2)

asymmetric information noncollateralized risk reinvestment risk b-l-t sandwiches none of the above

Question 11.11. Statement (1) A bond is a debt security that promises to make payments periodically for a specified period of time. Statement (2) A stock is a security that is a claim on the earnings and assets of a corporation. (Points : 2)

Statement (1) is true; Statement (2) is false Statement (1) is false; Statement (2) is true Statement (1) and Statement (2) are both true Statement (1) and Statement (2) are both false

Question 12.12. Which of the following is a long-term financial instrument? (Points : 2)

Treasury bond bankers acceptance commercial paper Treasury bill All of the above