Exam 29: Non-Bank Finance

An example of permanent insurance is ________ insurance, and an example of temporary insurance is ________ insurance.

________ are financial intermediaries that pool the resources of many small investors by selling them shares and using the proceeds to buy securities.

Why are consumers better off obtaining credit from sources other than consumer finance companies?

To reduce adverse selection, insurance providers collect information on policyholders. This is known as ________.

List insurance management practices for lowering adverse selection and moral hazard.

________ are financial intermediaries that provide the public with a kind of protection: income payments on retirement.

Demutualization refers to ________.

Sales finance companies compete directly with banks for ________.

An insurance management tool to discourage policyholders from engaging in risky activities that make an insurance claim more likely is known as a/an ________.

Mutual funds were created ________.

An investment bank purchases securities from a corporation at a predetermined price and then resells them in the market. This process is called ________.

A corporation acquires new funds only when its securities are sold ________.

Institutional funds can be a concern because they ________.

A defined-contribution plan ________.

Life insurance company regulation is the responsibility of ________.

A financial institution that assists in the sale of securities in the primary market is the ________.

A defined-benefit plan ________.

Consumer finance companies typically make loans to consumers for all of the following except to ________.

The financial market where a corporation or government issues securities is called ________.

Which of the following is an example of temporary life insurance?