The main provider(s) of funds to the U.S. Treasury is (are) a. households and businesses. b. foreign financial institutions. c. the Federal Reserve System. d. foreign nonfinancial sectors. Which of the following is a capital market instrument? a. a six-month CD b. a three-month Treasury bill c. a ten-year bond d. an agreement for a bank to loan funds directly to a company for nine months If markets are _____ investors could use available information ignored by the market to cam abnormally high returns. a. perfect b. active c. inefficient d. in equilibrium The risk that financial problems could spread among financial institutions and across financial markets, causing a collapse of the financial system, is known as: a. systemic risk. b. leverage risk. c. financial meltdown risk. d. credit risk. Without the participation of financial intermediaries in financial market transactions. a. information and transaction costs would be lower. b. transaction costs would be higher but information costs would be unchanged. c. information costs would be higher but transaction costs would be unchanged. d. information and transaction costs would be higher