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Direct finance involves the sale to ________ of marketable securities such as stocks and bonds.A) householdsB) insurance companiesC) pension fundsD) financial intermediaries2) Regulation of the financial systemA) occurs only in the United States.B) protects the jobs of employees of financial institutions.C) protects the wealth of owners of financial institutions.D) ensures the stability of the financial system.3) One purpose of regulation of financial markets is toA) limit the profits of financial institutions.B) increase competition among financial institutions.C) promote the provision of information to shareholders, depositors and the public.D) guarantee that the maximum rates of interest are paid on deposits.4) Property that is pledged to the lender in the event that a borrower cannot make his or her debt payment is calledA) collateral.B) points.C) interest.D) good faith money.
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