Multiple Choice
Alco Electronics needs to borrow money to pay for a large capital investment. It is deciding between getting a bank loan and issuing bonds. Which statement is TRUE about the options Alco is considering?
A) A bank loan is part of a loanable funds market, but issuing bonds is not.
B) A bank loan is borrowing from many savers, while issuing bonds is not.
C) A bank loan is borrowing a large amount from one lender, while issuing bonds is borrowing small amounts from many lenders.
D) Issuing bonds is part of the loanable funds market, but a bank loan is not.
Correct Answer:
Verified
Correct Answer:
Verified
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