Part 1

Which statement is true?

      a. The global capital market’s increased cost of capital and greater investment options

          benefit borrowers.

      b. The global capital market’s higher cost of capital and lower investment options

          benefit borrowers.

      c. The global capital market’s lower cost of capital and greater investment options

          make transaction difficult for borrowers.

      d. The global capital market’s lower cost of capital and greater investment

          options benefit borrowers.

Part 2

Which of the following is true?

      a. Some similar functions are present in both global capital markets and

          domestic markets.

      b. All the functions in global capital markets and in domestic markets are the same.

      c. All the functions in global capital markets and in domestic markets are completely

          different from each other.

      d. None of the above.