In a World Without FIs, Households Will Be Less Willing

question 71

Multiple Choice

In a world without FIs, households will be less willing to invest in corporate securities because they

• A)are not able to monitor the activities of the corporation more closely than FIs.
• B)tend to prefer shorter, more liquid securities.
• C)are subject to price risk when corporate securities are sold.
• D)may not have enough funds to purchase corporate securities.
• E)All of these.

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Definitions:

Federal Government's Role

The responsibilities and powers assigned to the national government as opposed to state or local governments.

Elementary and Secondary Education

Refers to the first stages of formal education typically provided to children and adolescents, covering kindergarten through high school levels.

K-12 Education Spending

Financial outlay by governments and private entities towards education from kindergarten through 12th grade, covering expenses such as teacher salaries and school infrastructure.

Federal Government

The national government of a federal country, which shares sovereignty with constituent states or provinces and possesses powers specifically granted to it by the constitution.