the economics of money, banking, and financial markets

213 #

© 2014 Pearson Canada Inc.#

4. 
   

   Of the sources of external funds for nonfinancial businesses in Canada, loans from banks and
   other financial intermediaries account for ____ of the total.
   A) 6 percent
   B) 40 percent
   C) 56 percent
   D) over 70 percent
   Answer: D
   Diff: 1 Type: MC Page Ref: 162
   Skill: Recall
   Objective List: 8.1 Depict how asymmetric information results in adverse selection and moral
   hazard

   
   


5. 
   

   Stocks and bonds supply less than ____ of the external funds corporations need to
   finance their activities.
   A) one-third
   B) one-quarter
   C) one-half
   D) two-thirds
   Answer: A
   Diff: 1 Type: MC Page Ref: 162
   Skill: Recall
   Objective List: 8.1 Depict how asymmetric information results in adverse selection and moral
   hazard

   
   


6. 
   

   Of the sources of external funds for nonfinancial businesses in Canada, corporate bonds and
   commercial paper account for approximately ____ of the total.
   A) 5 percent
   B) 10 percent
   C) 15 percent
   D) 50 percent
   Answer: C
   Diff: 1 Type: MC Page Ref: 162
   Skill: Recall
   Objective List: 8.1 Depict how asymmetric information results in adverse selection and moral
   hazard

   
   


7. 
   

   Of the following sources of external finance for Canadian nonfinancial businesses, the least
   important is ____.
   A) loans from banks
   B) stocks
   C) bonds and commercial paper
   D) loans from other financial intermediaries
   Answer: B
   Diff: 1 Type: MC Page Ref: 161 - 162
   Skill: Recall
   Objective List: 8.1 Depict how asymmetric information results in adverse selection and moral
   hazard