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.

---

Definitions:

Sit-Down Strike

Tactic adopted by labor unions in the mid- and late 1930s, whereby striking workers refused to leave factories, making production impossible; proved highly effective in the organizing drive of the Congress of Industrial Organizations.

U.S. Steel

An integrated steel producer with major production operations in the United States, founded in 1901 by J.P. Morgan, Andrew Carnegie, and others, playing a significant role in the nation's industrial growth.

Steel Workers Organizing Committee

A group formed in the 1930s that aimed to unite steel workers for better wages, working conditions, and labor rights.

Tennessee Valley Authority

A federally owned corporation in the United States created by congressional charter in May 1933 to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley, a region particularly affected by the Great Depression.