1) Of the sources of external funds for nonfinancial businesses in the United States, stocks account for approximately ________ of the total.

A) 2%

B) 11%

C) 20%

D) 40%

2) Nonfinancial businesses in Germany, Japan, and Canada raise most of their funds

A) By issuing stock

B) By issuing bonds

C) From nonbank loans

D) From bank loans.

3) The primary purpose of regulating the financial system is to

A) Guarantee that surplus providers do not suffer losses.

B) Protect financial system jobs.

C) Protect the wealth of financial institutions.

D) Promote the stability of the financial system.

4) Commercial and farm mortgages, in which property is pledged as collateral, account for

A) One-quarter of borrowing by nonfinancial businesses.

B) One-half of borrowing by nonfinancial businesses.

C) One-twentieth of borrowing by nonfinancial businesses.

D) Two-thirds of borrowing by nonfinancial businesses.

5) A clause in a mortgage loan contract requiring the borrower to purchase homeowner's insurance is an example of a

A) Proscriptive covenant.

B) Prescriptive covenant.

C) Restrictive covenant.

D) Constraint-imposed covenant.

Answer rating: 100% (QA)

1 B 11 2 D From bank loans 3 D ... View the full answer