If a borrower has information that is not available to a prospective lender, there is 3 Multiple Choice 2.94 points Skipped a trading algorithm a transfer of risk information asymmetry liquidity risk. In direct finance, 5 Multiple Choice 2.94 points Skipped the asset holder has a claim on a financial institution while in Indirect finance the asset holder has a direct claim on the borrower. the lender has a claim on a financial institution while in indirect finance the lender has a direct claim on the borrower the asset holder has a direct claim on the borrower while in indirect finance the asset holder has a claim on a financial institution the asset holder has a direct claim on a private sector corporation while in indirect finance the asset holder has a claim on the government Asymmetric information in financial markets is a potential problem usually resulting from 7 Multiple Choice 2.94 points borrowers having more information than the lenders. lenders having more information than borrowers. the fact that people are basically dishonest. the uncertainty about Federal Reserve monetary policy Which of the following statements are TRUE? 8 Multiple Choice 2.94 points The maturity of a security is the length of time to the security's expiration date. A US Treasury bill has a maturity of one year or less. A share of stock has no maturity. All of the above statements are true Only A and B above. When financial markets work well they 9 Multiple Choice 2.94 points Skipped transfer savings from more valuable to less valuable uses transfer savings from less valuable to more valuable uses transfer risk from those less willing to bear risk to those more willing to bear risk band care both true