【正文】 most significant financial asset(s) of . mercial banks in terms of total value.financial.C.38.Commercial banks differ from other businesses in that both their assets and their liabilities are mostlyCommercial bankersB.All of the optionsdiversify their portfolios.B.All of the optionsCommercial banksB.Asset allocationTopdownB.Asset allocationTopdownB.topdown analysis.A.the allocation of assets into broad asset classes.D.s CFO to personally vouch for the firm39。s CFO to personally vouch for the firm39。II and IVD.increased benefits to existing management of takenover firm.D.the ability to call shareholder meetings.D.A.III, IV, and VE.A.All of the optionsit encourages managers to undertake projects that will increase stock price.B.regulatory problemagency problemB.elimination of risk.A.hedge risks.E.A.has been enhanced due to the recent misuse and negative publicity regarding these instruments.E.A.a call option on Intel stock and a modity futures contract.E.A.are highly marketable and are generally very low risk.E.A.a fixed or variable ine stream at the option of the owner.D.a fixed stream of ine or a stream of ine that is determined according to a specified formula for the life of the security.C.17.A fixedine security pays$ trillion.C.16.The national net worth of the . in 2012 wasresidential real estate.C.15.The smallest ponent of domestic net worth in 2012 wasresidential real estate.C.14.The largest ponent of domestic net worth in 2012 was%C.13.In 2012 _______ of the assets of . households were financial assets as opposed to tangible assets.Life insurance reservesC.12.Which of the following financial assets made up the greatest proportion of the financial assets held by . households?mortgagesC.11.In 2012, ____________ was the most significant liability of . households in terms of total value.mutual fund sharesC.10.In 2012, ____________ was the most significant asset of . households in terms of total value.mutual fund sharesC.9.In 2012, ____________ was the most significant financial asset of . households in terms of total value.mutual fund sharesC.8.In 2012, ____________ was the least significant financial asset of . households in terms of total value.automobilesC.7.In 2012, ____________ was the most significant real asset of . households in terms of total value.s productive capacity both directly and indirectly.D.s productive capacity.B.6.Financial assetsLand is aC.5._________ financial asset(s).MachinesC.4._______ are financial assets.depository assets.C.3.The means by which individuals hold their claims on real assets in a welldeveloped economy areMachinesC.2._______ are real assets.all financial assets.B.Multiple Choice Questions1.The material wealth of a society is a function ofall real assets.C.Stocks and bondsD.derivative assets.D.StocksD.Derivatives areD.indirectly contribute to the country39。do not contribute to the country39。real estateD.debt securitiesD.debt securitiesD.debt securitiesD.bank loansD.Mutual fund sharesD.%D.inventories.D.inventories.D.$ trillion.D.a variable level of ine for owners on a fixed ine.D.A.a fixed stream of ine or a stream of ine that is determined according to a specified formula for the life of the security.are short term.B.All of the optionsa mon share of Microsoft.B.a mon share of Microsoft and a call option on Intel stock.depends on the value of the related security.B.is worthless today.attract customers.B.enhance their balance sheets.consumption timing.B.24.The ____________ refers to the potential conflict between management and shareholders.diversification problemC.25.A disadvantage of using stock options to pensate managers is thatit encourages managers to engage in empire building.C.26.Which of the following are mechanisms that have evolved to mitigate potential agency problems?I) Using the firm39。II and VB.I, III, and Vthe ability to engage in proxy fights.B.the threat of takeover by other firms.E.A.improved management and increased stock price.E.A.I, III, and IVE.A.s accounting statements.C.s accounting statements.E.A.bottomup analysis.choosing which securities to hold based on their valuation.B.33.Which of the following portfolio construction methods starts with security analysis?BottomupC.34.Which of the following portfolio construction methods starts with asset allocation?BottomupC.35._______ are examples of financial intermediaries.Insurance paniesC.36.Financial intermediaries exist because small investors cannot efficientlyassess credit risk of borrowers.C.37.________ specialize in helping panies raise capital by selling securities.Investment bankersC.real.D.real estateD.real estateD.real estateD.real estateD.inventoriesD.trade debt.D.trade debtD.overthecounterD.A.derivativesMarket new stock and bond issues for firmsB.None of the optionsSarbanesOxleyB.None of the optionsterm spread.B.51.Mortgagebacked securities were created when ________ began buying mortgage loans from originators and bundling them into large pools that could be traded like any other financia