Finance Companies Generally

question 5

Multiple Choice

Finance companies generally:

• A) issue shares and use the proceeds to buy bonds.
• B) raise funds in financial markets to lend to households and companies.
• C) raise funds from banks to lend to households and companies.
• D) issue bonds and use the proceeds to buy shares.

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Definitions:

Ginger Ale

A carbonated soft drink flavored with ginger.

Orange Juice

A beverage made by squeezing or pressing the liquid from orange fruit.

Vodka

A clear distilled alcoholic beverage of Russian origin made primarily from water and ethanol, sometimes with traces of impurities and flavorings.

Investments

The act of allocating resources with the expectation of generating an income or profit, often through acquiring assets like stocks, bonds, or real estate.