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In a World Without FIs, Households Will Be Less Willing

Question 81

Multiple Choice

In a world without FIs, households will be less willing to invest in corporate securities because they


A) are not able to monitor the activities of the corporation more closely than FIs.
B) tend to prefer shorter, more liquid securities.
C) are subject to price risk when corporate securities are sold.
D) may not have enough funds to purchase corporate securities.
E) All of the options.

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