Which of the Following Is an Advantage Associated with the Private

question 1

Multiple Choice

Which of the following is an advantage associated with the private source of capital?

• A)Privately placed instruments are highly liquid in nature.
• B)Privately placed instruments are accurately priced since all information about the firm is available.
• C)Privately placed instruments can be customized for individual investors.
• D)Investor base of privately placed instruments will be wider than that of publicly placed securities.

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Definitions:

Unemployment

A situation where individuals who are capable of working and willing to work are unable to find suitable employment.

Economic Improvement

The increase in overall economic health, usually marked by factors such as GDP growth, higher living standards, and reduced poverty rates.

Frontier

In economic terms, the frontier represents the maximum production capacity or efficiency that can be achieved with the current technology and resources.

Economic Inefficiency

A situation where resources are not allocated optimally, leading to waste or an outcome where potential gains are not fully realized.