Which of the following is NOT one of the three things financial markets and institutions enable households, firms, and governments to do? A. invest in capital B. eliminate risks C. smooth consumption expenditures D. trade risk

What is "Intermediation" and why do we use Financial Intermediaries, instead of direct finance, for the most part?

How does a cost-efficient capital market help reduce the prices of goods and services? Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital. Is an initial public offering an example of a primary or a secondary market transaction? Indicate whether the following instruments are examples of money market or capital market securities. a. US Treasury bills b. Long-term corporate bonds c. Common stocks d. Preferred stocks e. Dealer commercial paper Briefly explain what is meant by the term efficiency continuum.

What are the risk implications/shortcomings of financial institutions in increasing their financial leverage to increase return on equity?