Q5-10

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Apple creates and sells additional stock to the investment bank Goldman Sachs (first transaction). Goldman Sachs then resells the issue to the U.S. public through its mutual funds (second transaction). The first transaction is an example of aln) foreign exchange transaction secondary market transaction money market transaction primary market transaction Question 6 10 pl Which type of financial institutions has the largest share of assets as of year end 2016? Insurance companies Commercial banks Pension funds Investment companies Question 7 10 pts Everything else equal, what will happen to the returns (in USD) of US investors investing in Europe if the EURO depreciates (falls) in value against the USD? Higher returns I don't know Lower returns There is no impact 10 pts Question 8 According to the suggested readings, which of the following is NOT TRUE? Stock market often begins to recover sooner than the economy One concern about the IPO market in 2020 is overheating and prices may not reflect fundamentals Investors will earn more if they try to time the market O SPAC IPOs account for nearly half of all PO fundraising in 2020 Question 9 10 pts Which of the following is NOT a depository institution? a credit union a mutual fund a savings bank a commercial bank D Question 10 10 pts Which one of the below is NOT a benefit of financial institutions to suppliers of funds? Provide denomination intermediation Decrease liquidity and increase the price risk Reduce monitoring costs Reduce transaction costs