Which of the Following Are Given as Reasons Why Individual

question 49

Multiple Choice

Which of the following are given as reasons why individual investors may be able to borrow at the same rates as corporations? I.Corporate loans must be negotiated and supervised.
II) Corporations often borrow using illiquid assets as collateral.
III) Individuals tend to borrow smaller amounts.
IV) Individuals can borrow on margin through a broker.

• A)I and II only
• B)III and IV only
• C)II,III,and IV only
• D)I,II,and IV only
• E)I,II,III,and IV

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Definitions:

Monopoly

A market structure characterized by a single seller, selling a unique product in the market.

Restraints of Trade

Activities or factors that limit or obstruct the free trade and competition between businesses within a market.

Tying Contract

A requirement imposed by a seller that a buyer purchase another (or other) of its products as a condition for buying a desired product; a practice forbidden by the Clayton Act.