QUESTION 1 Hedging is: buying derivatives to take advantage of likely changes in the market O buying a company's own share O insuring against risks a company likely faces making sure that the hedges at company headquarters are well-pruned QUESTION 2 A financial intermediary is an institution that: Olends money to borrowers and raises that capital by issuing equity O lends money to borrowers and raises that capital by issuing liabilities against itself Issues shares and sells shares in itself to generate cash for investing for the shareholders issues shares and buys shares in itself to generate cash for investing for the shareholders QUESTION 3 What is the goal of financial management? To maximise corporate profits @ To maximise shareholder wealth To minimise costs To maximise earnings QUESTION 2 A financial intermediary is an institution that: lends money to borrowers and raises that capital by issuing equity lends money to borrowers and raises that capital by issuing liabilities against itself issues shares and sells shares in itself to generate cash for investing for the shareholders issues shares and buys shares in itself to generate cash for investing for the shareholders