In Which of the Following Examples Does the Firm Acquire

question 194

Multiple Choice

In which of the following examples does the firm acquire financial capital from households through a financial intermediary?

• A) A firm sells a bond to John Doe.
• B) The firm sells a bond to an employee pension fund.
• C) The firm uses retained earnings to purchase shares of its stocks owned by individuals.
• D) The firm uses retained earnings to purchase shares of its stock owned by a mutual fund company.

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