Which of the Following Is NOT One of the Eight

question 58

Multiple Choice

Which of the following is NOT one of the eight basic puzzles about financial structure?

• A)Debt contracts are typically extremely complicated legal documents that place substantial restrictions on the behavior of the borrower.
• B)Indirect finance,which involves the activities of financial intermediaries,is many times more important than direct finance,in which businesses raise funds directly from lenders in financial markets.
• C)Collateral is a prevalent feature of debt contracts for both households and business.
• D)There is very little regulation of the financial system.

---

Definitions:

Correlation Coefficient

A statistical measure that describes the extent to which two variables change together, and the strength of their relationship.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to 1.