Raising funds through financial intermediaries is called
A) indirect finance. B) dividend reinvestment.
C) direct finance. D) corporate finance.
A
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Which statement is true?
A. All regions of the United States were primarily agricultural in 1865. B. Only the South was primarily agricultural in 1865. C. Only the North and West were primarily agricultural in 1865. D. None of the statements are true.
Suppose that the money multiplier is 4. If the monetary base decreases by $2 million, the quantity of money will
A) increase by $8 million. B) increase by $500,000. C) decrease by $8 million. D) decrease by $500,000.
Under adaptive expectations theory, people expect the rate of inflation this year to be:
a. zero, regardless of the rate last year. b. the same as last year. c. the rate based on predictable and fiscal policies. d. All of these.
Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The business is earning exactly a normal profit. Thus, the average price per greeting card must be
A. $1.52. B. $2. C. $4. D. $6.