Which of the following can be described as involving indirect finance?

A. they allow funds to move from those without productive investment opportunities to those who have such opportunities.

B. they allow consumers to time their purchases better.

C. they weed out inefficient firms.

D. they do all of the above.

E. they do A and B of the above

A. investment bank.

B. commercial bank.

C. stock exchange.

D. brokerage house.

A. A corporations stock is traded in an over-the-counter market.

B. People buy shares in a mutual fund.

C. A pension fund manager buys commercial paper in the secondary market.

D. An insurance company buys shares of common stock in the over-the-counter markets.

E. None of the above

A. A corporations stock is traded in an over-the-counter market.

B. A corporation buys commercial paper issued by another corporation.

C. A pension fund manager buys commercial paper from the issuing corporation.

D. Both A and B of the above.

E. Both B and C of the above

A. They both can be long-term financial instruments.

B. They both involve a claim on the issuers income.

C. They both enable a corporation to raise funds.

D. All of the above.

E. Only A and B of the above

A. A bond is a long-term security that promises to make periodic payments called dividends to the firms residual claimants.

B. A debt instrument is intermediate term if its maturity is less than one year.

C. A debt instrument is long term if its maturity is ten years or longer.

D. The maturity of a debt instrument is the time term) that has elapsed since it was issued