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Which of the Following Statements Is True of U

Question 62

Multiple Choice

Which of the following statements is true of U.S. firms, financial institutions, and banking organizations?


A) U.S. firms had much higher growth rates than their European counterparts.
B) U.S. firms follow less conservative working capital policies than European firms.
C) Corporations in the U.S. use significantly greater proportions of long-term financing than European firms.
D) U.S. financial institutions traditionally have been subject to less restrictions and regulations than banking organizations in other countries.
E) U.S. banking organizations often have very close relationships with the firms that borrow from them, which generally results in a greater willingness to provide more short-term, risky debt than we observe in European banks.

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