hmwk4 mc questions

hmwk4 mc questions - Name_ Homework 4 - EC370 - W09...

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Name___________________________________ Homework 4 - EC370 - W09 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Of the following sources of external finance for American nonfinancial businesses, the least important is 1) _______ A) loans from banks. B) loans from other financial intermediaries. C) bonds and commercial paper. D) stocks. 2) One purpose of regulation of financial markets is to 2) _______ A) limit the profits of financial institutions. B) increase competition among financial institutions. C) guarantee that the maximum rates of interest are paid on deposits. D) promote the provision of information to shareholders, depositors and the public. 3) Property that is pledged to the lender in the event that a borrower cannot make his or her debt payment is called 3) _______ A) good faith money. B) points. C) interest. D) collateral. 4) The reduction in transactions costs per dollar of investment as the size of transactions increases is 4) _______ A) economies of trade. B) economies of scale. C)
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hmwk4 mc questions - Name_ Homework 4 - EC370 - W09...

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