题目内容

Debt contracts

A. are agreements by the borrowers to pay the lenders fixed dollar amounts at periodic intervals.
B. have a higher cost of state verification than equity contracts.
C. are used less frequently to raise capital than are equity contracts.
D. never result in a loss for the lender.

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WhichofthefollowingstatementsconcerningexternalsourcesoffinancingfornonfinancialbusinessesintheUnitedStatesaretrue?

A. Bondsareafarmoreimportantsourceoffinancethanarestocks.
B. Stocksandbonds,combined,supplymorethanone-halfoftheexternalfunds.
C. Financialintermediariessuchasbanksarearelativelyunimportantsourceofexternalfunds.
D. Only(a)and(b)oftheabove.

WhichofthefollowingstatementsconcerningexternalsourcesoffinancingfornonfinancialbusinessesintheUnitedStatesaretrue?

A. Financialintermediariessuchasbanksarethemostimportantsourceofexternalfunds.
Bondsareafarmoreimportantsourceoffinancethanarestocks.
C. Stocksandbonds,combined,supplylessthanone-fifthoftheexternalfunds.
D. Only(a)and(b)oftheabove.

Aborrowerwhotakesoutaloanusuallyhasbetterinformationaboutthepotentialreturnsandriskoftheinvestmentprojectsheplanstoundertakethandoesthelender.Thisinequalityofinformationiscalled

A. moralhazard.
B. asymmetricinformation.
C. noncollateralizedrisk.
D. adverseselection.

Ifbadcreditrisksaretheoneswhomostactivelyseekloansand,therefore,receivethemfromfinancialintermediaries,thenfinancialintermediariesfacetheproblemof

A. moralhazard.
B. adverseselection.
C. free-riding.
D. costlystateverification.

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