Question 6
Suppose the U. S. Treasury announces plans to issue $ 50 billion of new bonds. Assuming the announcement was not expected, what effect, other things held constant, would that have on bond prices and interest rates?
1) Prices and interest rates would both rise. 2) Prices would rise and interest rates would decline. 3) Prices and interest rates would both decline. 4) There would be no changes in either prices or interest rates. 5) Prices would decline and interest rates would rise.
Question 7 Which of the following statements is CORRECT?
1) Corporations are at a disadvantage relative to partnerships because they have to file more reports to state and federal agencies, including the Securities and Exchange Administration, even if they are not publicly owned
2) In a regular partnership, liability for the firm ' s debts is limited to the amount a particular partner has invested in the business
3) A fast-growth company would be more likely to set up as a partnership for its business organization than would a slow-growth company