(Answered)-Which of the following does NOT involve a financial intermediary? - (2025 Updated Original AI-Free Solution
Question
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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