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When companies need new funds for a project, they Select one: a. Sell bonds b. Sell shares of stock c. Borrow money from the
The most powerful policy making body of the Fed is the Select one: a. Governors of the Fed O b. Presidents of the Federal Res
Eurodollars are Select one: a. European dollars b. European dollars in U.S. banks c. U.S. dollars in European banks d. None o
2. Important benefits of mutual fund investment include Select one: of 1 a. Excellent diversification b. Professional money m
3 Which of the following is a money market instrument? Select one: O a. Bankers Acceptances of 1 b. Common stock bought less
The DJIA represents trading activities in the Select one: a. NYSE market b. NASDAQ market c. Both NYSE and NASDAQ markets Mar
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Answer #1

Answer 1: The given options are evaluated as follows :

  1. Sell Bonds - It is a way to raise funds .and hence, this is correct.
  2. Sell shares of Stock - Issuing stock is also a way to raise funds and hence, this is correct.
  3. Borrow money from the Fed - Only member Banks and institutions can borrow from the Fed and hence, this option is incorrect.
  4. Both (a) and (b) are correct - As the options A and B are correct, so this option represents the correct answer.
  5. Both (b) and (c) are correct - This option is rejected because option C is incorrect.

Conclusion: Option D denotes the correct answer.


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