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t Financial intermediares exist because small investors cannat eicienty A diversity their portilios C advertise for needed investments D. dversity their portolos and assess credit
t Financial intermediares exist because small investors cannat eicienty A diversity their portilios C advertise for needed investments D. dversity their portolos and assess credit risk of bomowers E.Ald options 2. Atthough derivatives can be used as speculative instruments, businesses most often use them to A attract customers B appease stockhoiders C ofset debt D. hedge risks. E enhance their balance sheets 3. The refers to the potential confict between management and shareholders B. diversification problem C. liquidity probliem D. solvency problem E regulatory problem 4. Commercial banks differ from other businesses in that both their assets and their labilities are mosty A illiquid B. financial. C real D owned by the government E regulated
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