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1. Financial institutions in the U.S. economy Suppose Dmitri would like to use $9,000 of his savings to make a financial investment. One way of

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1. Financial institutions in the U.S. economy Suppose Dmitri would like to use $9,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose Touch Tech, a hand-held computing firm, is selling stocks to raise money for a new lab-a practice known as finance. Buying a share of Touch Tech stock would give Dmitri the firm. In the event that Touch Tech runs into financial difficulty will be paid first Suppose Dmitri decides to buy 100 shares of Touch Tech stock. Which of the following statements are correct? Check all that apply. An increase in the perceived profitability of Touch Tech will likely cause the value of Dmitri's shares to rise. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Dmitri's shares to decline. The price of his shares will rise if TouchTech Issues additional shares of stock. Alternatively, Dmitri could make a financial investment by purchasing bonds issued by the U.S. government. Assuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays a municipal bond issued by a state. Interest rate than a

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