Exam 11: The Nature of Financial Intermediation

The advent of money market mutual funds is __________ the trend of "institutionalization," in which a __________ percentage of financial assets are directly owned by individuals.

One type of financial intermediary now falling in relative importance is

"Institutionalization" refers to the fact that a(n)__________ percentage of funds in the United States are flowing __________ the financial markets through financial intermediaries

Pension plans, because of the __________-term nature of their liabilities, prefer to hold __________-term assets.

To avoid maturity mismatches, most financial intermediaries tend to

A perfect market would have all but which of the following characteristics?

In 1981, the combined net worth of the entire savings-and-loan industry in the United States was estimated by economists to be

"Information Problematic" borrowers are generally

As Regulation Q was repealed, most of the assets of savings-and-loans were in the form of

The increase in interest rates that shook depository institutions began in the

Regulation Q was rendered ineffective by the invention of

Regulation Q was repealed in the __________ by the __________.

Consumer finance companies, because of the __________-term nature of their liabilities, prefer to hold __________-term assets.

In the 1980s, banks responded to the loss of loans to the commercial paper market by increasing loans to all the following except

A major reason for the existence of financial intermediaries is

A bank that mismatches its asset and liability maturities is

Economies of scale in information production are enjoyed by

Pension fund growth has been spurred by the recent development of "defined __________ plans," such as the __________ plan.

The Financial Services Modernization Act

Repealing Regulation Q still left savings-and-loan associations with a problem: most of their __________ were still at __________ interest rates.