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| 1 . |
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The largest source of external funds for U.S. firms is:
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| 2 . |
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Asymmetric information occurs when:
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| 3 . |
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A bad credit risk seeks out loans more actively. This is a(n):
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| 4 . |
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A borrower engages in activities that are undesirable from a lender's point of view. This is the:
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| 5 . |
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The free-rider problem:
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The principal-agent problem:
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| 7 . |
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A financial crisis is not characterized by:
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| 8 . |
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When interest rates are high, lenders may not want to make loans because of:
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A venture capital firm:
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| 10 . |
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An incentive compatible debt contract:
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| 11 . |
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Which of the following describes the "lemons problem?"
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| 12 . |
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By taking advantage of economies of scale and developing expertise in computer technology, financial intermediaries overcome the problem of:
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| 13 . |
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Which of the following causes a financial crisis to move into the debt deflation phase?
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| 14 . |
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The financial crises occurring in Mexico and East Asia during the 1990's
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| 15 . |
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How can the collapse of major corporations such as Enron and MCI WorldCom contribute to financial crises?
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Answer choices in this exercise are randomized and will appear in a different order each time the page is loaded.
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