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:

Operations

The day-to-day activities and processes undertaken by a business to produce goods or provide services efficiently and effectively.

Legal Responsibility

The obligation to act according to the law, being subject to legal penalties or liabilities for failing to do so.

Corporate Behaviour

Refers to the actions and policies of a company, influencing its culture and external perceptions.

External Regulations

Rules, laws, and guidelines imposed by external entities that an organization must comply with.