Which of the following statements is most correct?
A)The financial crisis and recession of 2007-2009 had little effect on the ability of borrower firms to obtain short-term financing and for firms with surplus funds to invest in short-term instruments.
B)The financial crisis and recession of 2007-2009 had strong effects on the ability of borrower firms to obtain short-term financing and for firms with surplus funds to invest in short-term instruments.
C)The financial crisis and recession of 2007-2009 had strong effects on the ability of borrower firms to obtain short-term financing but made it easy for firms with surplus funds to invest in short-term instruments.
D)The financial crisis and recession of 2007-2009 had little effect on the ability of borrower firms to obtain short-term financing but made it easy for firms with surplus funds to invest in short-term instruments.
E)none of the above

Question

Quizplus · Accepted Answer

The financial crisis and recession of 2007-2009 had strong effects on the ability of borrower firms to obtain short-term financing, as financial institutions became more risk-averse and less willing to lend. Additionally, firms with surplus funds also had difficulty finding safe and profitable short-term investments as interest rates and yields decreased sharply.

Which of the Following Statements Is Most Correct