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1. Financial institutions in the U.S. economy Suppose Jacques would like to use $9,000 of his savings to make a financial investment. One way of
1. Financial institutions in the U.S. economy Suppose Jacques 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 RoboTroid, a robotics firm, is selling bonds to raise money for a new lab-a practice known as finance. Buying a bond issued by RoboTroid would give Jacques the firm. In the event that Robo Troid runs into financial difficulty, will be paid first. Suppose instead Jacques decides to buy 100 shares of RoboTrold stock. Which of the following statements are correct? Check all that apply. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase RoboTroid stock. The price of his shares will rise if RoboTroid issues additional shares of stock. An increase in the perceived profitability of RoboTroid will likely cause the value of Jacques's shares to rise. Alternatively, Jacques could make a financial investment by purchasing bonds issued by the US government interest rate than a Assuming that everything else is equal, a U.S. government bond that matures 10 years from now most likely pays a U.S. government bond that matures 30 years from now
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