C) Middle-out
D) Buy and hold
E) Asset allocation
35) _______ are examples of financial intermediaries.
A) Commercial banks
B) Insurance companies
C) Investment companies
D) Credit unions
E) All of the options
36) Financial intermediaries exist because small investors cannot efficiently
A) diversify their portfolios.
B) assess credit risk of borrowers.
C) advertise for needed investments.
D) diversify their portfolios and assess credit risk of borrowers.
E) All of the options.
37) ________ specialize in helping companies raise capital by selling securities.
A) Commercial bankers
B) Investment bankers
C) Investment issuers
D) Credit raters
38) Commercial banks differ from other businesses in that both their assets and their liabilities are mostly
A) illiquid.
B) financial.
C) real.
D) owned by the government.
E) regulated.
39) In 2018, ____________ was(were) the most significant financial asset(s) of U.S. commercial banks in terms of total value.
A) loans and leases
B) cash
C) real estate
D) deposits
E) investment securities
40) In 2018, ____________ was(were) the most significant liability(ies) of U.S. commercial banks in terms of total value.
A) loans and leases
B) cash
C) real estate
D) deposits
E) investment securities
41) In 2018, ____________ was(were) the most significant real asset(s) of U.S. nonfinancial businesses in terms of total value.
A) equipment and software
B) inventory
C) real estate