If you borrow $5,000 from your bank to purchase shares of Twitter from your cousin Vinny, this is an example of obtaining ________ financing and purchasing the stock in a ________ market
A) direct; primary B) indirect; secondary C) direct; secondary D) indirect; primary
C
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Price discrimination:
A. can benefit consumers with a lower willingness to pay when compared to other consumers in the market B. can be a successful strategy for any firm in a competitive market C. tends to decrease the profits of the firm. D. is more successful if resale of the product is possible from one consumer to another.
These educational fields contribute to the advancement of technology in
A. scientific, engineering, and managerial education. B. medical, mathematics, engineering. C. chemistry, biology, computer science. D. the liberal arts.
As we saw in the chapter, some financial instruments are used primarily to transfer risk. Explain how a bread maker can use a financial instrument to transfer the following risk: the bread maker has the opportunity to provide bread to a local army base. The base figures they will need 10,000 loaves of bread each week, or roughly 500,000 for a year. The problem is the baker must quote a price for the entire year. The baker would really like to have this contract but he realizes that fluctuating input prices (specifically wheat) could result in significant losses.
What will be an ideal response?
Suppose there is a decrease in the price at which a bondholder sells her bond. In this case, the holding period return will:
A. decrease, since this lowers the capital gain. B. be negative. C. equal the coupon rate. D. increase, since yields and prices are inversely related.