1. Which of the following is not a way in which banks lend short-term unsecured loans? Choices: By sending the amount earned from trust and investment products offered by the bank Through a guaranteed credit line that has a commitment fee for any unused amount for the year Through credits cards lines with a certain credit limit By lending a single date maturity loan to a debtor
1. Which of the following is not a way in which banks lend short-term unsecured loans?
Choices:
By sending the amount earned from trust and investment products offered by the bank
Through a guaranteed credit line that has a commitment fee for any unused amount for the year
Through credits cards lines with a certain credit limit
By lending a single date maturity loan to a debtor
2. The following are methods of acquiring funds through long-term financing, except
Choices:
Issuing bonds with semi-annual coupon payment at a discounted price
Selling equity securities at an amount above the par value indicated in the stock certificate
Issuing a note that indicates a promise to pay the indicated supplier in a future date
Selling equity securities with a characteristic of both debt and equity security
3. Which is false about long-term sources of a firm's capital?
Choices:
All types of corporations may issue equity securities to the public
Some types of bank loans may require collateral from potential debtors
Retained earnings are internal sources of funding that can be utilized for expansion
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