Which of the following is NOT a description of indirect finance?
A. A pension fund ompany lends funds to you.
B. You take out a student loan from your bank.
C. You borrow $10,000 from your parents.
D. You buy shares in a mutual fund.
Answer: C
You might also like to view...
Define the following terms: a) risky outcome. b) probability
What will be an ideal response?
Use a figure to show the effect of a sterilized central bank purchase of foreign assets under the imperfect asset substitutability assumption
What will be an ideal response?
Based on the information in Scenario 15.7, if you expect the price to be $21 next year, you should
A) keep the wine in barrels until next year no matter what the interest rate. B) keep the wine if interest rates are above 5%. C) keep the wine if interest rates are below 5%. D) sell the wine now. E) do nothing until you know what the interest rate is going to be for the following year.
If the legal and regulatory environment fails to protect property rights and is often used to favor some at the expense of others, which of the following is most likely to be encouraged?
a. productive activities b. a high rate of investment c. rent-seeking and unproductive activities d. competitive markets