All of the following take place in the direct finance market except
A) ownership in corporations is sold in the form of common stock.
B) deposits from savers are accumulated and loans made to borrowers.
C) ownership in corporations is sold in the form of preferred stock.
D) corporate bonds are sold to savers.
Answer: B
You might also like to view...
Suppose there are only two goods: guns and roses. If the relative price of guns falls, then the relative price of roses
a. must also fall. b. must rise. c. is unaffected. d. could rise, fall, or remain unchanged.
Which of the following is a difference between a monopolistically competitive market and a monopoly in the long run?
A) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist usually earns positive economic profits in the long run. B) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist incurs losses in the long run. C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run, while a monopolist charges a price equal to marginal cost in the long run. D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run, while a monopolist charges a price equal to marginal cost in the long run.
Suppose the economy has a recessionary gap. By using an expansionary monetary policy, the Fed can
A) raise real GDP without increasing the price level. B) raise real GDP and the price level. C) raise real GDP and decrease the price level. D) raise the price level alone, but cannot increase real GDP.
Economic analysis requires both mathematical reasoning and historical study.
Answer the following statement true (T) or false (F)