The problems posed by sovereign wealth funds include

	A.	restrictions on imports and exports, national security issues, unsophisticated investment management,
	B.	non-transparency, patent theft, unsophisticated investment management.
	C.	their large size, patent theft, non-transparency,
	D.	their large size, national security issues, non-transparency,

_______ involves ___________ liabilities with one set of characteristics and using the proceeds to _______ assets with a different set of characteristics

	A.	asset transformation, buying, sell
	B.	asset transformation, selling, buy
	C.	financial frictions, selling, buy
	D.	short selling, selling, sell

____ supervision focuses on the safety and soundness of ________________

	A.	microprudential, only banks
	B.	macroprudential, individual financial institutions,
	C.	macroprudential, only financial markets
	D.	microprudential, individual financial institutions,

As a share of total financial intermediary assets, depository institutions (excluding credit unions) have seen their share of assets _____________ between 1970 and 2016.

	A.	approximately not change.
	B.	rise more or less continuously,
	C.	fall more or less continuously,
	D.	rise and then plateau,

The study by Kroszner and Rajan led them to conclude that

	A.	the banking system needs very tight regulations.
	B.	the Pecora Hearings were necessary,
	C.	the Glass-Steagall act was unnecessary and decreased the efficient functioning of the financial system,
	D.	the Glass-Steagall act increased the efficient functioning of the financial sy

A New York Times article of 10.17.20 ($421 Million in Debt: Trump Calls It a Peanut, but Challenges Lie Ahead) contained the following passage:

When a bank asks for a personal guarantee [of a loan], it is because the bank isnt satisfied with the creditworthiness of the borrower, If the captain gives a personal guarantee for the ship, he will be less likely to sink it. These statements are an instance of where collateral

	A.	has no effect on the financial transaction,
	B.	none of the above.
	C.	reduces a moral hazard problem,
	D.	increases an adverse selection problem,

Assume that a bank has not borrowed any funds as deposits, CDs, etc. and that its only source of funds for lending is equity capital. In this extreme case,

	A.	ROE > ROA
	B.	ROE = ROA
	C.	ROE < ROA
	D.	ROE = 2 * ROA

On 10.14.20, the New York Times reported that Europe Can Impose Tariffs on U.S. in Long-Running Aircraft Battle and that The tariffs, when American companies are reeling from the coronavirus pandemic, would be especially painful for Boeing, Boeing stock ROSE in the early part of that trading day (10.14.20). The most plausible explanation for this puzzling stock price rise despite the bad news was

	A.	unexpected (unknown) good news does not affect stock prices today.
	B.	expected (known) good news raises stock prices today,
	C.	unexpected (unknown) bad news raises stock prices today,
	D.	expected (known) bad news does not affect stock prices today,

In the video on insider trading, SAC Capital was alleged to have the edge. The edge is

	A.	public information that is material to a companys performance
	B.	non-public information that is material to a companys performance
	C.	non-public information that is not material to a companys performance
	D.	public information that is not material to a companys performance