A buyer of a newly-issued bond
A) is a borrower of funds.
B) is a lender of funds.
C) is purchasing ownership in the institution that issues the bonds.
D) must be a producer and not a consumer.
Ans: B) is a lender of funds.
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Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch.
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