|A financial system’s primary concern is funneling money from:
||lender-savers to borrower-spenders.
|Stocks that are traded in the _____ are typically those of smaller and lesser known firms.
|Secondary financial markets are similar to:
|Which of the following theories states that security prices reflect all public information, but not all private information?
|The process of converting financial securities with one set of characteristics into securities with another set of characteristics is called:
|If you are a borrower, which would you prefer to occur during the life of your loan?
||A level of inflation that is higher than that anticipated at the outset of the loan.
|If inflation is anticipated to be 5 percent during the next year, while the real rate of interest for a one-year loan is 5 percent, then what should the nominal rate of interest be for a risk-free one-year loan?
|If the supply of loanable funds decreases relative to the demand for those funds, then we would expect:
||interest rates to increase.
|The cost of borrowing money is called:
|Investment banking firms provide: