Which of the Following Statements Concerning External Sources of Financing

question 70

Multiple Choice

Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are true?

• A) Issuing marketable securities is the primary way that they finance their activities.
• B) Bonds are the least important source of external funds to finance their activities.
• C) Stocks are a relatively unimportant source of finance for their activities.
• D) Selling bonds directly to the American household is a major source of funding for American businesses.

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Definitions:

Utilities Possibilities Frontier

A curve depicting all possible allocations of goods and services that maximize two or more parties' utility under a given condition.

Utilities Possibilities Frontier

A graph that shows the maximum satisfaction levels of two or more agents in an economy based on the allocation of resources.

Marginal Utility

The change in satisfaction or utility an individual gains from consuming an additional unit of a good or service.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.