HW2 - Econ 215 Homework Chapter 2 [1] Which of the...

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Econ 215 Homework Chapter 2 [1] Which of the following are primary markets? (a) The New York Stock Exchange (b) The U.S. government bond market (c) The over-the-counter stock market (d) The options markets (e) None of the above [2] A corporation acquires new funds only when its securities are sold in the (a) secondary market by an investment bank. (b) primary market by an investment bank. (c) secondary market by a stock exchange broker. (d) secondary market by a commercial bank. [3] Intermediaries who link buyers and sellers by buying and selling securities at stated prices are called (a) investment bankers. (b) traders. (c) brokers. (d) dealers. (e) none of the above. [4] Through risk-sharing activities, a financial intermediary _________ its own risk and _________ the risks of its customers.
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(a) reduces; increases (b) increases; reduces (c) reduces; reduces (d) increases; increases [5] When the borrower engages in activities that make it less likely that the loan will be repaid, _________ is said to exist. (a) asymmetric information
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This note was uploaded on 12/05/2011 for the course ECON 215 taught by Professor Clark during the Spring '11 term at Emory.

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HW2 - Econ 215 Homework Chapter 2 [1] Which of the...

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