1. Financial institutions in the U.S. economy Suppose Clinton decides to use $3,500 currently held as savings to make a financial investment. One method of making a financial investment is the purchase of stock or bonds from a private company. Suppose Bayzer, a pharmaceutical firm, is selling stocks to raise money for a new lab. This practice is called finance. Buying a share of Bayzer stock would give Clinton the firm. In the event that Bayzer runs into financial difficulty, will be paid first. Suppose Clinton chooses to buy 250 shares of Bayzer stock. Which of the following statements are correct? Check all that apply. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Clinton's shares to decline. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Bayzer stock. An increase in the perceived profitability of Bayzer will likely cause the value of Clinton's shares to rise. Alternatively, Clinton could undertake their financial investment by purchasing bonds issued by the U.S. government. Assuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays a municipal bond issued by a state. interest rate than a

True (t) or False (f) _____ Debt investments are investments in government and corporation bonds

In investment in debt securities accounted for at fair value through other comprehensive income, the difference between the fair value and the accumulated unrealized gain or loss - OCI presented in the statement of financial position would normally equal to: *   A. The unrealized gain or loss - OCI presented as part of other comprehensive income     B. The amortized cost of the debt securities     C. The interest income for the period     D. The fair value of the debt securities in the previous period