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.

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Definitions:

Express Warranties

Are explicit, confirmed promises made by a seller to a buyer about the condition or quality of a product or service.

Implied Warranty

a legal assumption that a product or service sold will meet certain quality and functionality standards even if not explicitly stated.

Merchantability

A guarantee that a product sold meets certain quality standards and is fit for the ordinary purposes for which such goods are used.

UCC

The Uniform Commercial Code represents a collection of statutes offering legal guidelines and regulations for commercial or business activities and transactions within the United States.