【文章內容簡介】 on.(d) . Treasury Department.(e) Federal Reserve System.Answer: C30. An audit certifies that(a) a firm’s loans will be repaid.(b) a firm’s securities are safe investments.(c) a firm abides by standard accounting principles.(d) the information reported in a firm’s accounting statements is correct.Answer: C31. The authors’ analysis of adverse selection indicates that financial intermediaries in general, and banks in particular (because they hold a large fraction of nontraded loans),(a) have advantages in overing the freerider problem, helping to explain why indirect finance is a more important source of business finance than is direct finance.(b) play a greater role in moving funds to corporations than do securities markets as a result of their ability to overe the freerider problem.(c) provide betterknown and larger corporations a higher percentage of their external funds than they do to newer and smaller corporations, which rely to a greater extent on the new issues market for funds.(d) all of the above.(e) only (a) and (b) of the above.Answer: E32. The authors’ analysis of adverse selection indicates that financial intermediaries(a) overe freerider problems by holding nontraded loans.(b) must buy securities from corporations to diversify the risk that results from holding nontradable loans.(c) have not been very successful in dealing with adverse selection problems in financial markets.(d) do all of the above.(e) do only (a) and (b) of the above.Answer: A33. The pecking order hypothesis predicts that the _________ a corporation is, the more likely it will be to _________.(a) smaller and less well known。 issue securities(b) larger and more well known。 borrow from financial intermediaries(c) larger and more well known。 issue securities(d) smaller and less well known。 need external financingAnswer: C34. Financial intermediaries and, particularly, banks have the ability to avoid the freerider problem as long as they primarily(a) make private loans.(b) acquire a diversified portfolio of stocks.(c) buy junk bonds.(d) do a balanced bination of (a) and (b) of the above.Answer: A35. Property that is pledged to the lender in the event that a borrower cannot make his or her debt payment is called(a) points.(b) interest.(c) collateral.(d) good faith money.Answer: C36. Collateral is(a) property that is pledged to the lender if a borrower cannot make his or her debt payments.(b) a prevalent feature of debt contracts for households.(c) a prevalent feature of debt contracts for business.(d) all of the above.(e) only (a) and (c) of the above.Answer: D37. The majority of household debt in the United States consists of(a) credit card debt.(b) consumer installment debt.(c) collateralized loans.(d) unsecured loans, such as student loans.Answer: C38. Commercial and farm mortgages, in which property is pledged as collateral, account for(a) onequarter of borrowing by nonfinancial businesses.(b) onehalf of borrowing by nonfinancial businesses.(c) onetwentieth of borrowing by nonfinancial businesses.(d) twothirds of borrowing by nonfinancial businesses.Answer: A39. Because of the moral hazard problem,(a) lenders will write debt contracts that restrict certain activities of borrowers.(b) lenders will more readily lend to borrowers with high net worth.(c) debt contracts are used less frequently to raise capital than are equity contracts.(d) all of the above.(e) only (a) and (b) of the above.Answer: E40. Moral hazard in equity contracts is known as the _________ problem because the manager of the firm has fewer incentives to maximize profits than the stockholders might ideally prefer.(a) principalagent(b) adverse selection(c) freerider(d) debt deflationAnswer: A41. Because managers (_________) have less incentive to maximize profits than the stockholdersowners (_________) do, stockholders find it costly to monitor managers。 thus, stockholders are reluctant to purchase equities.(a) principals。 agents(b) principals。 principals(c) agents。 agents(d) agents。 principalsAnswer: D42. The principalagent problem(a) occurs when managers have more incentive to maximize profits than the stockholdersowners do.(b) would not arise if the owners of the firm had plete information about the activities of the managers.(c) in financial markets helps to explain why equity is a relatively important source of finance for American business.(d) all of the above.(e) only (a) and (b) of the above.Answer: B43. Solutions to the moral hazard problem include(a) high net worth.(b) monitoring and enforcement of restrictive covenants.(c) greater reliance on equity contracts and less on debt contracts.(d) all of the above.(e) only (a) and (b) of the above.Answer: E44. One financial intermediary in our financial structure that helps to reduce the moral hazard arising from the principalagent problem is the(a) venture capital firm. (b) money market mutual fund.(c) pawn broker. (d) savings and loan association.Answer: A45. A venture capital firm protects its equity investment from moral hazard through which of the following means?(a) It places people on the board of directors to better monitor the borrowing firm’s activities.(b) It writes contracts that prohibit the sale of an equity investment to anyone but the venturecapital firm.(c) It prohibits the borrowing firm from replacing its management.(d) It does both (a) and (b) of the above.(e) It does both (a) and (c) of the above.