Firms with the most profitable investment opportunities are willing and able to pay the most for capital, so they tend to attract it away from less efficient firms or from those whose products are not in demand.

Answer the following statement true (T) or false (F)


True

Funds are allocated among borrowers by interest rates. Firms with higher production opportunities can offer higher returns to the investors. See 5-1: The Cost of Money

Business

You might also like to view...

The unexpired cost of a plant asset is referred to as its

A) depreciable cost. B) carrying value. C) accumulated depreciation. D) original cost.

Business

The generalized, patterned, unconscious mobilization of the body’s natural energy resources when confronted with a demand or stressor is known as ______.

A. cognitive dissonance B. stress response C. psychological job strain D. job burnout

Business

At the optimal order quantity (EOQ), the total annual ordering cost is given by ______.

A. annual demand x EOQ/ordering cost per order B. annual demand + EOQ x ordering cost per order C. annual demand – EOQ – ordering cost per order D. annual demand/EOQ x ordering cost per order

Business

Which of the following is an example of a situational interview question?

A) If you were aware that a coworker was submitting false data, what would you do? B) What is your ideal work environment? C) What do you predict for the future of our industry? D) Tell me about a time that you dealt with confidential information.

Business