Megasoft wants to finance the purchase of newequipment for developing security s

Question

Megasoft wants to finance the purchase of newequipment for developing security software called Doors, but theyhave limited internal funds. Megasoft will likely

A.   demand loanable funds by buying bonds.

B.   demand loanable funds by selling bonds.

C.   supply loanable funds by buying bonds.

D.   supply loanable funds by selling bonds.



A bond that never matures is known as a

A.   perpetuity.

B.   an intermediary bond.

C.   an indexed bond.

D.   a junk bond.


The Dow Jones Industrial Average is now based on the prices of thestocks of

A.   30 major U.S. corporations.

B.   100 major U.S. corporations.

C.   500 representative U.S. corporations.

D.   1000 representative U.S. corporations.

Explanation / Answer

1. B   demand loanable funds by selling bonds 2. A Perpetutity 3. A 30 major US corporations.

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