Financial intermediaries exist because

a$.$ there are substantial information and transaction costs in the economy.

b$.$ they assist in improving the lot of the small saver.

c$.$ they are involved in the process of indirect finance.

d$.$ they do all of the above.

Which of the following can be described as involving direct finance?

a$.$ A corporation's stock is traded in an over$-$the$-$counter market.

b$.$ A corporation buys commercial paper issued by another corporation.

c$.$ A pension fund manager buys commercial paper from the issuing corporation.

d$.$ Both A and B of the above.

Financial market activities affect

a$.$ personal wealth.

b$.$ spending decisions by individuals and business firms.

c$.$ the economy's location in the business cycle.

d$.$ all of the above.

Monetary policy is chiefly concerned with

a$.$ how much money businesses earn.

b$.$ the level of interest rates and the nation's money supply.

c$.$ how much money people pay in taxes.

d$.$ whether people have saved enough money for retirement.

Financial markets and institutions

a$.$ involve the movement of huge quantities of money.

b$.$ affect the profits of businesses.

c$.$ affect the types of goods and services produced in an economy.

d$.$ do all of the above.

The price of one country's currency in terms of another's is called

a$.$ the exchange rate.

b$.$ the interest rate.

c$.$ the Dow Jones industrial average.

d$.$ none of the above.