13. Why do financial assets show up as a component of household wealth, but not of national wealth? Why do financial assets still matter for the material well-being of an economy? 14. Discuss the advantages and disadvantages of the following forms of managerial compensation in terms of mitigating agency problems, that is, a potential conflict of interes between managers and shareholders. a. A fixed salary b. Stock in the firm that must be held for five years c. A salary linked to the firm's profits 15. Oversight by large institutional investors or creditors is one mechanism to reduce agency problems. Why dont individual investors in the firm have the same incentive to keep an eye on management? 18. What would you expect to be the relationship between securitization and the role of financial intermediaries in the economy? For example, what happens to the role of local banks in providing capital for mortgage loans when national markets in morgtage backed securities become highly developed? 21. The average rate of return on investments in large stocks has outpaced that on investments in Treasury bills by about 8% since 1926 . Why, then, does anyone invest in treasury bills