Internal financing consists of drawing upon current income and accumulated savings to fund the acquisition of assets.
Correct Answer:
Verified
Q2: According to the text, externally generated funds
Q3: The so-called "leverage effect"
refers to boosting earnings
Q4: The act of borrowing simultaneously gives rise
Q5: The business sector is typically a net
Q6: The household sector is typically a net
Q7: Measured by total assets the most important
Q8: Commercial banks are contractual institutions.
Q9: Savings banks are classified as investment institutions.
Q10: An advantage of indirect finance is that
Q11: The "hedging principle"
involves attempting to match maturity
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