Question 28 1 pts Financial markets have the basic and main function of Financial markets have the basic function of assuring that governments need never resort to printing money Transfering fund from one who has money to one who needs money Question 29 1 pts There are different terms for interest rate due to different usage. Which one is not the alternative name for interest rate? Cost of borrowing Investment return Required return O Yield to maturity Question 27 1 pts The problem with buying foreign stocks is that most foreign companies are not listed on any of the U.S. stock exchanges, so the purchase of shares is difficult. Intermediaries have found a way to solve this problem by selling O stock in U.S. companies with international sales foreign stock indexes O ADRs ETFs that include foreign stocks Question 26 1 pts In which of the following situations would you prefer if you are a borrower? The interest rate is 5 percent and the expected inflation rate is 2 percent The interest rate is 7 percent and the expected inflation rate is 7 percent The interest rate is 10 percent and the expected inflation rate is 8 percent The interest rate is 25 percent and the expected inflation rate is 5 percent Question 24 1 pts A bond that a U.S. firm sells in the Europe dominated in Euros is called A bond that a U.S. firm sells in the Japan dominated in Euros is called eurobonds; foreign bonds foreign bonds; foreign bonds eurobonds; eurobonds foreign bonds; eurobonds Question 25 1 pts ETF contains multiple assets in one share. What is not the advantage of an ETF? ETFs can be listed and traded like individual stocks ETFs can diversify risks O ETFs tend to have lower management fees