That only large, well-established corporations have access to securities markets
A) explains why indirect finance is such an important source of external funds for businesses.
B) can be explained by the problem of moral hazard.
C) can be explained by government regulations that prohibit small firms from acquiring funds in securities markets.
D) explains why newer and smaller corporations rely so heavily on the new issues market for funds.
A
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Which of the following methods of generating federal government revenue was first introduced during the Civil War?
a. the personal income tax b. inflationary finance c. import tariffs d. bond sales
If the expenditure schedule must be shifted downward to reach potential GDP, then the economy is experiencing a(n)
A. inflationary gap. B. precautionary gap. C. restrictive gap. D. expansionary gap.
The Federal Reserve
a. is responsible for conducting the nation's monetary policy, and it plays a role in regulating banks. b. is responsible for conducing the nation's monetary policy, but it plays no role in regulating banks. c. is not responsible for conducting the nation's monetary policy, and it plays a role in regulating banks. d. is not responsible for conducing the nation's monetary policy, and it plays no role in regulating banks.
Let the TC curve be given by the equation TC(Q) = 5 + Q. The ATC curve can be expressed as
A. Q. B. (5/Q) + 1. C. (1/Q) + 5. D. 5.