Most of the Evidence To-Date Indicates That Firms with Which

question 7

Multiple Choice

Most of the evidence to-date indicates that firms with which two of the following characteristics are most apt to frequently use derivatives?
I.firms with low financial distress costs
II.firms with high financial distress costs
III.firms with easy access to capital markets
IV.firms with constrained access to capital markets

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

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Definitions:

Extreme Poverty

The condition where individuals live below the minimum income level considered necessary to meet basic needs, often defined as living on less than $1.90 a day.

Poverty Rate

The percentage of the population with incomes below the official poverty income levels that are established by the federal government.

World's Income

The total earnings from production and services by individuals and corporations around the globe, often considered in terms of Gross World Product.

Low-Income Developing

A term used to describe countries with lower levels of income and economic development in comparison to global averages.