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) Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are true?
A) Stocks are a far more important source of finance than are bonds.
B) Stocks and bonds, combined, supply less than one half of the external funds.
C) Financial intermediaries are the least important source of external funds for businesses.
D) Since 1970, more than half of the new issues of stock have been sold to American households.
3) Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are true?
A) Issuing marketable securities is the primary way that they finance their activities.
B) Bonds are the least important source of external funds to finance their activities.
C) Stocks are a relatively unimportant source of finance for their activities.
D) Selling bonds directly to the American household is a major source of funding for American businesses.