Which of the following is not one of the eight basic puzzles about financial structure?
A) Stocks are the most important source of finance for American businesses.
B) Issuing marketable securities is not the primary way businesses finance their operations.
C) Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance, in which businesses raise funds directly from lenders in financial markets.
D) Banks are the most important source of external funds to finance businesses.
Correct Answer:
Verified
Q21: An example of the _ problem would
Q23: The problem faced by the lender that
Q26: Financial intermediaries develop _ in things such
Q27: Financial intermediaries' low transaction costs allow them
Q32: Because of the "lemons problem" the price
Q38: The reduction in transactions costs per dollar
Q39: A clause in a mortgage loan contract
Q41: A lesson of the Enron collapse is
Q45: Equity contracts
A)are claims to a share in
Q48: External financing by _ should be more
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