In Stock
Test Bank For Financial Institutions Management 5th Canadian Edition By Marcia Cornett
Edition: 5th Edition
Format: Downloadable ZIP Fille
Resource Type: Test bank
Duration: Unlimited downloads
Delivery: Instant Download
$20.00
Test Bank For Financial Institutions Management 5th Canadian Edition By Marcia Cornett
Chapter 1
- Financial institutions act as intermediaries between suppliers and demanders of money.
True False
- If a household invests in corporate securities and does not supervise how the funds are invested or used by the corporation, the risk of not earning the desired return or not having the funds returned increase.
True False
- If not done by FIs, the process of monitoring the actions of borrowers would reduce the attractiveness and increase the risk of investing in corporate debt and equity by individuals.
True False
- Failure to monitor the actions of firms in a timely and complete fashion after purchasing securities in that firm exposes the investor to agency costs.
True False
- The risk that the sale price of an asset will be less than the purchase price of an asset is called liquidity risk.
True False