Which of the following does NOT involve a financial intermediary?

Question 3 options:

saving for retirement

buying a treasury bond from the government

buying stock online

They all involve an intermediary.

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Question 4(1 point)

Banks are said to ration credit when they refuse to lend above a certain interest rate. The purpose of such a policy is to minimize _____ of lending.

Question 4 options:

adverse selection problems

moral hazard problems

transactions costs

all of the above

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Question 5(1 point)

An analyst says that inside information would not have helped investors forecast the collapse of the stock market in 2008. This is true if markets satisfy

Question 5 options:

allocational efficiency.

weak efficiency.

semi-strong efficiency.

strong efficiency.

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Question 6(1 point)

Spinning, in relation to IPOs, is a practice that hurts

Question 6 options:

underwriters.

investors.

the company going public.

all of the above.

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Question 7(1 point)

Which are examples of external finance?

Question 7 options:

issuing commercial paper

stock sales

issuing bonds

all of the above

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Question 8(1 point)

If the annual earnings for a company are $10, the expected future price of its stock is $110, and the current price is $100, then the required rate of return on the stock is

Question 8 options:

10%.

20%.

30%.

none of the above.

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Question 9(1 point)

The free-rider problem affects decisions of participants in

Question 9 options:

the stock market.

IPOs.

both of the above.

neither of the above.

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Question 10(1 point)

Which of the following could be examples of inefficiencies in financial markets data?

Question 10 options:

random walk

high volatility

bubbles

all of the above

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