In the traditional view, stocks are ____ than bonds to the firm that issues them and ____ than bonds to the investor who purchases them
a. less risky; less risky
b. less risky; riskier
c. riskier; less risky
d. riskier; riskier
b
You might also like to view...
Securities markets perform a valuable economic function because they provide
a. an opportunity for investors to make money in a short time. b. the principal indicator of the performance of the U.S. economy. c. an easy way to transfer corporate securities, thereby reducing risk to investors. d. assurance that stock purchasers can get back the purchase price of their stock.
Big Bucks Bank currently holds $20 million in excess reserves. If the Fed increases the rate of interest it pays on reserves held at the Fed, we would expect Big Bucks Bank to:
A. use those excess reserves to increase its lending. B. not change its lending activity, as excess reserves are not eligible to receive interest paid on reserve accounts. C. move a portion of those excess reserves into its required reserve account. D. hold more of those excess reserves in its reserve account at the Fed, reducing the amount it is willing to lend.
A major university hired an economist to forecast enrollment to produce a prediction of “head count.” One variable that she would probably emphasize more than any other in trying to make the forecast
A. how interested people are in attending college. B. the employment opportunities that college opens up. C. survey results on public interest in education. D. her instinct about what the public wants. E. the price of attending—tuition.
What role have remittances and direct foreign investment played in Guatemala, Costa Rica, and Honduras?
What will be an ideal response?