Which of the following statements is correct?
a. A large, well-known corporation such as Proctor and Gamble would generally use financial intermediation to finance expansion of its factories.
b. On average, indexed funds outperform managed funds.
c. Unlike corporate bonds and stocks, checking accounts are a store of value.
d. Financial intermediaries are institutions through which savers can directly provide funds to borrowers.
b
You might also like to view...
Nancy returns to school to study medicine. After graduating during an economic boom, she spends six months looking for a job. During this period, she is considered
A. Structurally unemployed. B. Seasonally unemployed. C. Frictionally unemployed. D. Cyclically unemployed.
In the above figure, the budget line would rotate in the direction indicated as a result of a
A) rise in the price of a book. B) fall in the price of a book. C) rise in the price of a movie. D) decrease in income.
Graphically, the market supply curve is obtained by
A) changing the ceteris paribus conditions. B) a change in quantity supplied. C) horizontally summing quantity supplied at various prices for individual producers. D) vertically summing quantity supplied at various prices for individual producers.
Economic Value Added helps firms to avoid the hidden-cost fallacy
a. by ignoring the opportunity costs to using a capital b. by differentiating between sunk and fixed costs c. by taking all capital costs into account including the cost of equity d. none of the above