Which of the Following Can Be Described as Involving Indirect

question 103

Multiple Choice

Which of the following can be described as involving indirect finance?

• A) You make a loan to your neighbor.
• B) A corporation buys a share of common stock issued by another corporation in the primary market.
• C) You buy a U.S. Treasury bill from the U.S. Treasury.
• D) You make a deposit at a bank.

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Definitions:

Straight-Line

This term often refers to a method of depreciation in accounting where an asset loses value in equal increments over its useful life.

Downward-Sloping Demand Curve

A graphical representation showing the inverse relationship between the price of an item and the quantity demanded.

Price-Elasticity Coefficient

A measure indicating the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Equal To Zero

A state or condition where a value, quantity, or balance is zero.