A clear and short answer, please

Problem Set 4 Problems 1. Explain the 8 basic facts regarding the financial structure throughout the world. 2. Describe two ways in which financial intermediaries help lower transaction costs in the economy 3. How do standard accounting principles required by the government help financial markets work more efficiently? 4. Which firms are most likely to use bank financing rather than to issue bonds or stocks to finance their activities? Why? 5. Would you be more willing to lend to a friend if she put all of her life savings into her business than you would if she had not done so? Why? 6. The more collateral there is backing a loan, the less the lender has to worry about adverse selection. Is this statement true, false, or uncertain? Explain your answer. 7. Explain how the separation of ownership and control in corporations might lead to poor management 8. How can a stock market crash provoke a financial crisis? 9. Explain conflicts of interest