Which of the following is/are usually seen as benefits of financial intermediation?
(1) Interest rate fixing
(2) Risk pooling
(3) Maturity transformation
A. 1 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Which of the following are financial intermediaries?
(1) Venture capital organisation
(2) Pension fund
(3) Merchant bank
A. 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Which of the following statements is/are correct?
1 Securitisation is the conversion of illiquid assets into marketable securities
2 The reverse yield gap refers to equity yields being higher than debt yields
3 Disintermediation arises where borrowers deal directly with lending individuals
A. 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Which of the following is/are usually seen as benefits of financial intermediation?
1 Interest rate fixing
2 Risk pooling
3 Maturity transformation
A. 1 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3