Finance Companies

question 8

Multiple Choice

Finance companies

• A)issue stock and use the proceeds to purchase bonds.
• B)raise funds in financial markets to lend to households and firms.
• C)raise funds from banks to lend to households and firms.
• D)issue bonds and use the proceeds to purchase stock.

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Definitions:

Mixed Numbers

A combination of a whole number and a fraction used to represent quantities that are greater than whole numbers but less than the next whole number.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest values without changing the value of the fraction.

Fractions

Numerical quantities that represent a part of a whole, typically written with a numerator divided by a denominator.

Mixed Numbers

A number consisting of an integer and a fraction, used to represent quantities greater than a whole but less than two wholes.