Multiple Choice
Which one of the following statements about firms from bank-based systems is correct?
A) These firms have less leverage as banks only tend to lend to firms with lots of fixed assets that can be used as collateral.
B) These firms have more leverage than firms from market-based-systems.
C) These firms tend to have banks as their main shareholders.
D) These firms have similar leverage, but source most of their debt financing from banks rather than bond markets.
Correct Answer:
Verified
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