1-01 What are five risks common to all financial institutions?

1-03 Identify and explain three economic disincentives that would dampen the flow of funds between household savers of funds and corporate users of funds in an economic world without financial institutions.

1-05 In what sense are the financial claims of FIs considered secondary securities, while the financial claims of commercial corporations are considered primary securities? How does the transformation process, or intermediation, reduce the risk, or economic disincentives, to the savers?

1-12 How can financial institutions invest in high-risk assets with funding provided by low-risk liabilities from savers?

1-13 How can individual savers use financial institutions to reduce the transaction costs of investing in financial assets?