Aplia Ch 13 1. Financial institutions in the U.S. economy Suppose Felix would like to invest $2,000 of his savings. One way of investing is to purchase stock or bonds from a private company. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a practice known as______ finance. Buying a bond issued by NanoSpeck would give Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will be paid first. Suppose instead Felix decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Felix\'s shares to decline. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase NanoSpeck stock. The price of his shares will rise if NanoSpeck issues additional shares of stock. Alternatively, Felix could invest by purchasing bonds issued by the U.S. government. Assuming that everything else is equal, a municipal bond issued by a state most likely pays a______ interest rate than a corporate bond issued by an electronics manufacturer. Aplia Ch 13 1. Financial institutions in the U.S. economy Suppose Felix would like to invest $2,000 of his savings. One way of investing is to purchase stock or bonds from a private company. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a practice known as______ finance. Buying a bond issued by NanoSpeck would give Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will be paid first. Suppose instead Felix decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Felix\'s shares to decline. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase NanoSpeck stock. The price of his shares will rise if NanoSpeck issues additional shares of stock. Alternatively, Felix could invest by purchasing bonds issued by the U.S. government. Assuming that everything else is equal, a municipal bond issued by a state most likely pays a______ interest rate than a corporate bond issued by an electronics manufacturer. Suppose Felix would like to invest $2,000 of his savings. One way of investing is to purchase stock or bonds from a private company. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a practice known as______ finance. Buying a bond issued by NanoSpeck would give Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will be paid first. Suppose instead Felix decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. Expectations of a recession that will reduce economy-wide corporate profi.

1. Aplia Ch 13
1. Financial institutions in the U.S. economy
Suppose Felix would like to invest $2,000 of his savings.
One way of investing is to purchase stock or bonds from a private company.
Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a
practice known as______ finance. Buying a bond issued by NanoSpeck would give
Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will
be paid first.
Suppose instead Felix decides to buy 100 shares of NanoSpeck stock.
Which of the following statements are correct? Check all that apply.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.

2. The price of his shares will rise if NanoSpeck issues additional shares of stock.
Alternatively, Felix could invest by purchasing bonds issued by the U.S. government.
Assuming that everything else is equal, a municipal bond issued by a state most likely pays
a______ interest rate than a corporate bond issued by an electronics manufacturer.
Aplia Ch 13
1. Financial institutions in the U.S. economy
Suppose Felix would like to invest $2,000 of his savings.
One way of investing is to purchase stock or bonds from a private company.
Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a
practice known as______ finance. Buying a bond issued by NanoSpeck would give
Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will
be paid first.
Suppose instead Felix decides to buy 100 shares of NanoSpeck stock.

3. Which of the following statements are correct? Check all that apply.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.
The price of his shares will rise if NanoSpeck issues additional shares of stock.
Alternatively, Felix could invest by purchasing bonds issued by the U.S. government.
Assuming that everything else is equal, a municipal bond issued by a state most likely pays
a______ interest rate than a corporate bond issued by an electronics manufacturer.
Suppose Felix would like to invest $2,000 of his savings.
One way of investing is to purchase stock or bonds from a private company.
Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a
practice known as______ finance. Buying a bond issued by NanoSpeck would give
Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will

4. be paid first.
Suppose instead Felix decides to buy 100 shares of NanoSpeck stock.
Which of the following statements are correct? Check all that apply.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.
The price of his shares will rise if NanoSpeck issues additional shares of stock.
Alternatively, Felix could invest by purchasing bonds issued by the U.S. government.
Assuming that everything else is equal, a municipal bond issued by a state most likely pays
a______ interest rate than a corporate bond issued by an electronics manufacturer.
Suppose Felix would like to invest $2,000 of his savings.

5. One way of investing is to purchase stock or bonds from a private company.
Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a
practice known as______ finance. Buying a bond issued by NanoSpeck would give
Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will
be paid first.
Suppose instead Felix decides to buy 100 shares of NanoSpeck stock.
Which of the following statements are correct? Check all that apply.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.
The price of his shares will rise if NanoSpeck issues additional shares of stock.
Alternatively, Felix could invest by purchasing bonds issued by the U.S. government.
Assuming that everything else is equal, a municipal bond issued by a state most likely pays

6. a______ interest rate than a corporate bond issued by an electronics manufacturer.
Suppose Felix would like to invest $2,000 of his savings.
Suppose Felix would like to invest $2,000 of his savings.
One way of investing is to purchase stock or bonds from a private company.
Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a
practice known as______ finance. Buying a bond issued by NanoSpeck would give
Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will
be paid first.
One way of investing is to purchase stock or bonds from a private company.
One way of investing is to purchase stock or bonds from a private company.
Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a
practice known as______ finance. Buying a bond issued by NanoSpeck would give
Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will
be paid first.
Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a
practice known as______ finance. Buying a bond issued by NanoSpeck would give
Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will
be paid first.
Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab?a
practice known as______ finance. Buying a bond issued by NanoSpeck would give
Felix_______ the firm. In the event that NanoSpeck runs into financial difficulty,_______ will
be paid first.

7. Suppose instead Felix decides to buy 100 shares of NanoSpeck stock.
Which of the following statements are correct? Check all that apply.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.
The price of his shares will rise if NanoSpeck issues additional shares of stock.
Suppose instead Felix decides to buy 100 shares of NanoSpeck stock.
Suppose instead Felix decides to buy 100 shares of NanoSpeck stock.
Which of the following statements are correct? Check all that apply.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.

8. The price of his shares will rise if NanoSpeck issues additional shares of stock.
Which of the following statements are correct? Check all that apply.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.
The price of his shares will rise if NanoSpeck issues additional shares of stock.
Which of the following statements are correct? Check all that apply.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.

9. The price of his shares will rise if NanoSpeck issues additional shares of stock.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the
value of Felix's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase
NanoSpeck stock.
The price of his shares will rise if NanoSpeck issues additional shares of stock.
The price of his shares will rise if NanoSpeck issues additional shares of stock.
The price of his shares will rise if NanoSpeck issues additional shares of stock.
Alternatively, Felix could invest by purchasing bonds issued by the U.S. government.

10. Assuming that everything else is equal, a municipal bond issued by a state most likely pays
a______ interest rate than a corporate bond issued by an electronics manufacturer.
Alternatively, Felix could invest by purchasing bonds issued by the U.S. government.
Alternatively, Felix could invest by purchasing bonds issued by the U.S. government.
Assuming that everything else is equal, a municipal bond issued by a state most likely pays
a______ interest rate than a corporate bond issued by an electronics manufacturer.
Assuming that everything else is equal, a municipal bond issued by a state most likely pays
a______ interest rate than a corporate bond issued by an electronics manufacturer.
Assuming that everything else is equal, a municipal bond issued by a state most likely pays
a______ interest rate than a corporate bond issued by an electronics manufacturer.
Solution
(a) NanoSpeck selling bonds to raise money is known as Debt finance.
(b) Buying a bond issued by NanoSpeck would give Felix Priority Claims to Assets to** the
firm. If NanoSpeck runs into financial difficulty, Felix (Bondholders) will be paid first.
**Provide drop-down options in Comment section for precise wording
(c) A municipal bond issued by a state pays a lower interest rate than a corporate bond.