Large companies with good credit ratings tend to rely on __________ for short-term financing
A) the commercial paper market
B) private placements
C) finance companies
D) equity
A
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The basic concepts used in the analytic framework of this text include all of the following EXCEPT
A) the not-for-profit nature of most financial institutions. B) a basic supply and demand analysis to explain the behavior of financial markets. C) an approach to financial structure based on transaction costs and asymmetric information. D) the concept of equilibrium.
An expansionary monetary policy that successfully counteracts a recession has the side effect of
A) lower investment spending than if no action had been taken. B) a larger government deficit than if no action had been taken. C) a higher price level than if no action had been taken. D) lower output than if no action had been taken.
Cynthia sells walnut cookies in a perfectly competitive market where the market price is $10 per cookie. Cynthia produces 500 cookies per month with a marginal cost of $5 per cookie, an average variable cost of $3 per cookie, and an average total cost of $7 per cookie. Cynthia is likely to: a. increase the production of cookies to maximize profit
b. decrease the production of cookies but stay open. c. continue to maintain current production levels to minimize her losses. d. shut down immediately to minimize her losses.
The main weapon advocated by the AFL to win their demands was the __________.
Fill in the blank(s) with the appropriate word(s).