Which of the Following Is Not One of the Eight

question 22

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:

Endorphin Levels

The concentration of endorphins, which are natural, pain-relieving chemicals produced by the body, in one's bloodstream.

Afraid

A feeling of fear or anxiety about a possible or imminent situation or event.

Under Stress

Experiencing physical or emotional tension resulting from challenging or demanding circumstances.

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood-glucose concentration; it plays a key role in the body's stress response.