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BSA 101 Testbank Financial Management- Polytechnic University of the Philippines( Question And Answers) Rated A.

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BSA 101 TEST BANK CHAPTER 1 TRUE/FALSE QUESTIONS 1. The purpose of the financial system is to bring savers and borrowers together. 2. Businesses are never DSUs. 3. A financial claim... is an “IOU” from a deficit spending unit. 4. Investment bankers help DSUs bring new primary security issues to market. 5. Deposits in a credit union by a household are an example of direct finance. 6. When an SSU owns a financial claim created by financial intermediation, its residual claim is against a DSU. 7. Assets of financial intermediaries include direct financial claims only. 8. Finance companies take small consumer deposits and make large consumer loans. 9. Liabilities of financial intermediaries are indirect financial claims. 10. Direct finance requires a more or less exact match of preferences. [Show More]

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