Which of the following is a disadvantage of financial intermediaries?

A. Large transaction costs, due to collection of taxes, fees and commissions

B. Help to spread out and decrease the risks

C. Using financial intermediaries reduces the costs of lending and borrowing

D. The conflicting needs of lenders and borrowers are reconciled, preventing market failure

. Commercial papers are a short-term security issued by to raise funds.

A. the central bank

B. commercial banks

C. large well- known companies

D. central and local governments

Which of the following is a certificate that results in the holder/investor being entitled to

dividends and the right to vote at a companys annual general meeting?

A. Stocks B. Rights C. Bonds

D. Warrants

29. Capital market instruments include:

A. negotiable certificates of deposits

B. equity

C. commercial paper

D. treasury bills

. A corporation receives new funds only when its securities are sold in a:

A. secondary market by an investment bank. B. primary market by an investment bank.

C. secondary market by a stock broker. D. money market by a stock broker.

. Which of the following financial securities is NOT an example of a debt instrument?

A. Treasury bills

B. Commercial paper

C. Common stock

D. Government bonds

The physical assets market deals with: A. intangible assets

B. real assets

C. raising of capital

D. stocks and bonds

. The main aim of a primary market is to: A. Help business raise new capital

B. Maximize the share price

C. Establish fair security prices

D. Allow for the transfer of shares

. The goal of profit maximization would result in priority for: A. cash flows available to stockholders

B. risk of the investment

C. earnings after taxes

D. timing of the returns