Which of the Following Is Not an Ironclad Rule in the Financial

question 27

Multiple Choice

Which of the following is not an ironclad rule in the financial markets?

• A) borrowing from a bank works better for large, well-known corporations
• B) banks fund small business loans and large firms issue bonds to raise money
• C) a bank can monitor a large established firm's better than a new small business
• D) relatively large and well-known firms typically never borrow from banks

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Definitions:

Malevolent

Having or showing a wish to do evil to others, characterized by harmful or malicious intentions.

Asocial

Characterized by the lack of interest in or avoidance of social interactions.

Eastern Europe Cluster

A grouping of countries in Eastern Europe that share similar cultural, economic, or historical characteristics.

Uncertainty Avoidance

A cultural dimension that describes the extent to which individuals in a society are uncomfortable with ambiguity and risk, preferring structured situations.