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:

Top Executives

Individuals who hold the highest-ranking positions in an organization, responsible for making major corporate decisions.

Management Programs

Management programs are structured plans or courses designed to improve the skills of managers in areas such as leadership, decision-making, and organizational effectiveness.

Direct Behaviors

Actions that are straightforward and unambiguous, often involving clear communication and immediate performance of tasks or directives.

Training Program

A structured course of activities designed to develop skills, knowledge, or behaviors.