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Ec 232 exam 2 / Ec 232 exam 2 - Questions and Answers $12.99   Add to cart
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Ec 232 exam 2 / Ec 232 exam 2 - Questions and Answers
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  • Ec 232

Ec 232 exam 2 / Ec 232 exam 2 - Questions and Answers S/b? Nissan wants to expand its current operations to a new country. It chooses to finance its expansion through equity financing. Answer:stocks The length of time that elapses before a bond matures Answer:term

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  • August 27, 2024
  • 30
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • Ec 232
  • Ec 232

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Ec 232 exam 2
S/b? Nissan wants to expand its current operations to a
new country. It chooses to finance its expansion through
equity financing.
Answer:stocks


The length of time that elapses before a bond matures
Answer:term




The likelihood that the borrower will repay the lender acc
ording to the agreement explained by the bond
Answer:credit risk




The manner in which income earned from a bond is subj
ect to taxation
Answer:Tax treatment




Bonds with higher interest rates tend to
- be issued by organizations that are less likely to default

,- be safer financial assets than bonds with lower interest
rates
- have a higher credit risk than bonds with lower interest
rates
- have a lower credit risk than bonds with lower interest r
ates
Answer:Have a higher credit risk than bonds with lower i
nterest rates




When a nation has a close economy like this (consumpti
on spending of 5134, investment spending of 356, and g
dp of 12555) what variable is not relevant in the national
income identity equation?
- consumption
- government purchases
- net exports
-gdp
Answer:Net exports




S/b? Roberta purchased a financial asset that gives her
partial ownership of a company
Answer:stocks

, S/b? Mars inc. Wants to build a new factory but does tha
t have the cash on hand to pay for it. It chooses to financ
e its new factory through debt financing
Answer:bonds




S/b? Raymundo owns a financial asset that he purchase
d from his local government and it matures in five years
Answer:bonds




A claim to ownership of part of firm
Answer:stock




A legal obligation to repay a debt at a specified date in t
he future
Answer:bond




Failure to repay a debt
Answer:default

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