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1. What is NOT a function of financial intermediary
A
channels savings
B
buy insurance
C
accept deposit
2. Which is the cost of not having a financial intermediary
A
Opportunity cost
B
Material cost
C
Monitoring cost
3. Which is the benefit of having a financial intermediary?
A
Liquidity for investor
B
Low interest for bank
C
High monitoring cost
4. Who can NOT be a deficit unit?
A
Borrower
B
Seller of shares
C
Saver
5. Financial intermediaries make profits by reducing transactions costs?
A
True
B
False
C
Hard to say
6. What is liquidity?
A
Easily convert into asset
B
Easily convert into cash
C
Easily to raise capital
7. What is diversification?
A
Reduce risk by buying more
B
Reduce risk by buying less
C
Reduce risk by buying same
8. Asymmetric information happen when one have ALL crucial information in decision making process
A
True
B
False
C
Hard to say
9. What is Adverse Selection?
A
bank more likely to choose a bad customer
B
bank more likely to choose a good customer
C
customer more likely to choose a bad bank
10. What is Agency Problem?
A
Fight between agents
B
Fight between CEO and CFO
C
Fight between CEO and shareholder