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Solution Manual For Financial Markets and Institutions, 8th Edition by Anthony Saunders, Marcia Cornett, Verified Chapters 1 - 25, Complete Newest Version 12,48 €   Añadir al carrito

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Solution Manual For Financial Markets and Institutions, 8th Edition by Anthony Saunders, Marcia Cornett, Verified Chapters 1 - 25, Complete Newest Version

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Solution Manual For Financial Markets and Institutions, 8th Edition by Anthony Saunders, Marcia Cornett, Verified Chapters 1 - 25, Complete Newest Version Solution Manual For Financial Markets and Institutions, 8th Edition by Anthony Saunders, Marcia Cornett, Verified Chapters 1 - 25, Complete Newe...

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Financial Markets And Institutions 8th Edition Anthony Saunders




Chapter 1

Student name:__________
1) What factors are encouraging financial institutions to offer overlapping financial services
such as banking, investment banking, brokerage, etc.? 1.I. Regulatory changes allowing
institutions to offer more services
2.II. Technological improvements reducing the cost of providing financial services
3.III. Increasing competition from full-service global financial institutions
4.IV. Reduction in the need to manage risk at financial institutions



A) I only
B) II and III only
C) I, II, and III only
D) I, II, and IV only
E) I, II, III, and IV




2) IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan
Stanley then resells the issue to the U.S. public through its mutual funds.

This transaction is an example of a(n):

A) primary market transaction.
B) asset transformation by Morgan Stanley.
C) money market transaction.
D) foreign exchange transaction.
E) forward transaction.




Version 1 1

,3) IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan
Stanley then resells the issue to the U.S. public through its mutual funds.

Morgan Stanley is acting as a(n)


A) asset transformer.
B) asset broker.
C) government regulator.
D) foreign service representative.
E) derivatives trader.




4) A corporation seeking to sell new equity securities to the public for the first time in order
to raise cash for capital investment would most likely:


A) conduct an IPO with the assistance of an investment banker.
B) engage in a secondary market sale of equity.
C) conduct a private placement to a large number of potential buyers.
D) place an ad in the Wall Street Journal soliciting retail suppliers of funds.
E) issue bonds with the assistance of a dealer.




5) The largest capital market security outstanding in 2019 measured by market value was:


A) securitized mortgages.
B) corporate bonds.
C) municipal bonds.
D) Treasury bonds.
E) corporate stocks.




Version 1 2

,6) The diagram below is a diagram of the:




A) secondary markets.
B) primary markets.
C) money markets.
D) derivatives markets.
E) commodities markets.




7) _________ and __________ allow a financial intermediary to offer safe liquid liabilities
such as deposits while investing the depositors' money in riskier illiquid assets.


A) Diversification; high equity returns
B) Price risk; collateral
C) Free riders; regulations
D) Monitoring; diversification
E) Primary markets; foreign exchange markets




8) Depository institutions include:


A) banks only.
B) thrifts only.
C) finance companies only.
D) banks and thrifts.
E) All of these choices are correct.




Version 1 3

, 9) Match the intermediary with the characteristic that best describes its function. 1.I.
Provide protection from adverse events
2.II. Pool funds of small savers and invest in either money or capital markets
3.III. Provide consumer loans and real estate loans funded by deposits
4.IV. Accumulate and transfer wealth from work period to retirement period
5.V. Underwrite and trade securities and provide brokerage services
1.Thrifts
2.Insurers
3.Pension funds
4.Securities firms and investment banks
5.Mutual funds



A) 1, 3, 2, 5, 4
B) 4, 2, 3, 5, 1
C) 2, 5, 1, 3, 4
D) 2, 4, 5, 3, 1
E) 5, 1, 3, 2, 4




10) Secondary markets help support primary markets because secondary markets: 1.I. offer
primary market purchasers liquidity for their holdings.
2.II. update the price or value of the primary market claims.
3.III. reduce the cost of trading the primary market claims.



A) I only
B) II only
C) I and II only
D) II and III only
E) I, II, and III




11) Financial intermediaries (FIs) can offer savers a safer, more liquid investment than a
capital market security, even though the intermediary invests in risky illiquid instruments
because:


Version 1 4

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