The main way corporations and governments raise money is through
A. the stock market.
B. the bond market.
C. the equity credit channel.
D. loans from banks.
Answer: B
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Which of the following explains why the marginal cost curve has a U shape?
A) Initially, the average cost of production rises, then falls. B) Initially, the marginal product of labor falls, then rises. C) Initially, the marginal product of labor rises, then falls. D) Initially, the average product of labor rises, then falls.
Consumer surplus is: a. the area underneath the demand curve
b. the total utility derived from consuming a good. c. the marginal utility of the last unit consumed multiplied by the number of units consumed. d. the difference between what consumers are willing to pay and what they are required to pay for a good.
If bond prices rise in the secondary market,
a. the interest rate rises in the secondary market b. the interest rate rises in the primary market c. this has no impact on the primary market d. they fall in the primary market e. they also rise in the primary market
Exhibit 6-13 Cost curves
?
In Exhibit 6-13, AFC is shown by the graph labeled:
A. I. B. II. C. III. D. V.