The U.S. government budget deficit in 2018 measured the extent to which 30 Multiple Choice 2.94 points the U.S. had to rely on foreign borrowing in 2018. U.S. government tax revenues exceeded U.S. government expenditures in 2018. O U.S. government expenditures exceeded U.S. government tax revenues in 2018 U.S. imports exceeded U.S. exports in 2018. O A and C If municipal bonds lost their tax exempt status, Multiple Choice you would expect their interest rate to increase you would expect their interest rate to decrease O you would expect their interest rate to remain the same you would expect savers to find them more desirable O Which of the following statements is correct? Multiple Choice Secondary markets exist for all securities The existence of a secondary market decreases the liquidity of a security There is a well-developed secondary market for Treasury Bills The development of a secondary market makes easier to sell that security in the primary market O C and D From the point of view of economic efficiency, the prevalence of asymmetric information Multiple Choice improves the flow of savings from less to more productive uses impedes the flow of savings from less to more productive uses reduces the importance of the SEC increases the amount of mutually beneficial transactions that will take place Which of the following statements about shares of stock is correct? Multiple Choice All profits must be distributed as dividends to shareholders Stocks are money market securities At maturity shareholders receive the face value of the stock O stocks are debt instruments None of the above are correct Financial intermediaries Multiple Choice act as middlemen, channeling funds from excess spenders to excess savers allow risk averse people to shift risk onto less risk averse people waste society's scarce resources by charging both borrowers and lenders for their services all of the above