1a) __________ instruments are also called fixed-income instruments

a) capital market

b) equity

c) derivative

d) debt

e) All of the above

1b) The _____________ problem exists when having insurance against some risk causes the insured party to take greater risk or to take less care in preventing the event that gives rise to the loss.

a) adverse selection

b) risk aversion

c) moral hazard

d) principal-agent

e) capital budgeting