Which of the following can be described as involving direct finance? O A. People buy shares in a mutual fund. O B. A corporation buys commercial paper issued by another corporation. OCA pension fund manager buys commercial paper from the issuing corporation. O D. Both A and B of the above O E. Both B and C of the above.
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A: Hi student Since there are multiple questions, we will answer only first question.
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- Which of the following can be described as involving direct finance? O A. People buy shares in a mutual fund. B. People buy shares of common stock in the primary markets. OC. A corporation buys a short-term corporate security in a secondary market. O D. A corporation takes out loans from a bank.Determine whether each of the following is direct financing or indirect financing. : investing in a mutual fund Direct Financing? Indirect Financing? taking out a loan at a commercial bank Direct Financing? Indirect Financing? selling stock on the stock market Direct Financing? Indirect Financing? selling bonds on the capital market Direct Financing? Indirect Financing?Which of the following can be described as involving indirect finance? a. People pay premiums to an insurance company b. A corporation issues new shares to people c. People lend money to their friends d. People buy bonds from companies
- Which of the following is a financial instrument? Select one: a. Merchant bankers b. Leasing Companies c. All the options d. Bonds e. Mutual Fund CompaniesMutual funds collect money from its _____ A) lenders B) shareholders C) banks D) loan sharks and invest those funds in _____. A) diversified portfolios of securities B) bank CDs C) precious metal and artWhich of the following can be categorized as Long term sources of finance ? i Equity Shares ii Trade Credit iii Debenture iv Money Market Instruments a. Both Money Market Instruments and Trade Credit b. Both Equity Shares and Debentures c. Only Equity Shares d. Only Money Market Instruments
- Explain each of the investment instruments stated below that offered by financial institutions. These are the investment instruments you like to invest. Explain and justify why. 1. stocks 2. bonds 3. AnnuitiesWhat are municipal bonds? What characteristics makes them especially attractive to high-income investors? What kinds of expenses do mutual funds incur? How are expense ratios calculated?The investment banks collect money from public, because O a. Business sells products. O b. Business issues shares and debentures. O C. Business wants to make profits. O d. Banks issue shares and debentures.
- Which of the following can be categorized as Short term sources of finance? i Equity Shares ii. Trade Credit iii Debenture iv Money Market Instruments a. Only Money Market Instruments b. Only Equity Shares c. Both Equity Shares and Debentures d. Both Money Market Instruments and Trade Credit4) Which of the following would be the first source of capital? a Internal funds B) Stock issuance c Bond issuance d Bank loans e None of the aboveIn Growth and Income Mutual Fund the companies make investment of their funds in a. Already proven companies b. Debentures of companies c. Finance companies d. Government securities