Please solve all

- Financial intermediaries can substantially reduce transaction costs per dollar of transactions because their large size allows them to take advantage of A) poorly informed consumers. C) standardization. B) their market power. D) economies of scale. its own risk and 8. Through risk-sharing activities, a financial intermediary the risks of its customers. A) reduces; reduces C) reduces, increases D) increases, reduces 9. When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, is said to exist. A) risk sharing C) moral hazard B) adverse selection D) free-rider problem 10. Which of the following financial intermediaries are depository institutions? A) A credit union B) A savings and loan association C) A commercial bank D) All of the above 11. Which of the following is a contractual savings institution? A) A finance company B) A pension fund C) A mutual fund D) A hedge fund 12. Which of the following are generally true of all bonds? A) Prices and returns for long-term bonds are more volatile than those for shorter-term bonds. B) Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise. C) The longer a bond's maturity, the higher is the rate of return that occurs as a result of the increase in the interest rate. D) Only A and B of the above are true. 13. The interest rate that equates the present value of the cash flow received from coupon bond with its market price today is the 4) current yield. ) real interest rate. B) yield to maturity. D) coupon rate