SOLVED

11) Equities is to ________ as bond is to ________. A) ownership; debt B) fairness; constraint C) stock; asset D) banks; exchanges 12) Nonfinancial businesses may acquire funds by borrowing from a commercial bank or by ________. A) purchasing short-term assets B) issuing securities C) issuing insurance policies D) trading on an exchange 13) Commercial banks are financial intermediaries, as are ________. A) household savers. B) state and local governments. C) insurance companies. D) organized exchanges. 14) The most important source of funds for nonfinancial businesses is ________. A) financial intermediaries. B) insurance companies. C) hedge funds. D) state and local governments. 15) Approximately 60 percent of the funds flowing to nonfinancial businesses come from________. A) hedge funds. B) financial intermediaries. C) organized exchanges, like the New York Stock Exchange. D) insurance companies. 16) Which of the following statements is correct? A) assets plus liabilities equal net worth. B) assets plus net worth equal liabilities. C) assets equal liabilities plus net worth. D) liabilities minus net worth equal assets. 17) Hedge funds________. A) acquire access to funds by accepting deposits then using these monies to lend to households and firms. B) raise funds by selling commercial paper then lend these funds to consumers. C) acquire access to monies through the payment of premiums by employees D) are a special type of mutual fund. 18) Credit unions ________. A) acquire access to funds by accepting deposits then use these monies in lending to hsoueholds and firms. B) are a special type of mutual fund. C) raise funds by selling commercial paper then lend these funds to consumers. D) acquire access to monies through the payment of premiums by employees 19) Pension funds________. A) acquire access to funds by accepting deposits then using these monies to lend to households and firms. B) raise funds by selling commercial paper then lend these funds to consumers. C) are a special type of mutual fund D) acquire access to monies through the payment of premiums by employees 20) Finance companies________. A) acquire access to funds by accepting deposits then using these monies to lend to households and firms. B) raise funds by selling commercial paper then lend these funds to consumers. C) acquire access to monies through the payment of premiums by employees D) are a special type of mutual fund.