Which of the Following Statements Concerning External Sources of Financing

question 52

Multiple Choice

Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are true?

• A) Stocks are a far more important source of finance than are bonds.
• B) Stocks and bonds, combined, supply less than one-half of the external funds.
• C) Financial intermediaries are the least important source of external funds for businesses.
• D) Since 1970, more than half of the new issues of stock have been sold to American households.

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Definitions:

Method of Substitution

A strategy for solving systems of equations by replacing variables with equivalent expressions to simplify the system.

System of Equations

A set of two or more equations with the same variables.

Method of Elimination

A technique used in solving systems of equations where one variable is eliminated by adding or subtracting the equations.

System of Equations

A set of two or more equations with the same variables, solved together to find common solutions.