Assume
that you borrow $2000 at 10% annual interest to finance a new
business project. For this loan to be profitable, the minimum amount
this project must generate in annual earnings is

A. You
make a loan to your neighbor.

B. A
corporation buys a share of common stock issued by another
corporation in the primary market.

C. You
buy a Treasury bill from the Treasury.

D. You
make a deposit at a bank.

A. They
can both be long-term financial instruments.

B. They
can both be short-term financial instruments.

C. They
both involve a claim on the issuerʹs income.

D. They
both enable a corporation to raise funds.

A. short-term

B. intermediate-term

C. long-term

D. prima-term

A. an
asset that can easily and quickly be sold to raise cash.

B. a
share of an ocean resort.

C. difficult
to resell.

D. always
sold in an over-the-counter market.

A. bond

B. money

C. capital

D. stock

A. foreign
citizens only.

B. U.S. citizens only

C. U.S. citizens and foreign citizens.

D. U.S.
mutual funds only.

A. Eurobond

B. foreign
bond

C. British
bond

D. currency
bond

A. the
Federal Reserve System.

B. the
Federal Deposit Insurance Corporation.

C. the
Office of Thrift Supervision.

D. the
Securities and Exchange Commission.