Which of the Following Is Not One of the Eight

question 1

Multiple Choice

Which of the following is not one of the eight basic facts about financial structure?

• A) Debt contracts are typically extremely complicated legal documents that place substantial restrictions on the behavior of the borrower.
• B) Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance in which businesses raise funds directly from lenders in financial markets.
• C) Collateral is a prevalent feature of debt contracts for both households and businesses.
• D) New security issues is the most important source of external funds to finance businesses.

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Definitions:

Effect Dependence

A condition or situation where the outcomes or consequences depend significantly on specific actions, variables, or factors.

Compliance

The act of conforming to established guidelines, standards, or regulations.

Identification

involves the process by which an individual aligns their attitudes and behaviors with those of a group or role model.

Internalized

Refers to the process of adopting the norms, attitudes, or behaviors of others as one's own, often unconsciously.