1. Financial institutions in the U.S. economy Suppose Karim decides to use $4,000 currently held as savings to make a financial investment. One method of making a financial investment is the purchase of stock or bonds from a private company. Suppose Warm Breeze, a cloud computing firm, is selling stocks to raise money for a new lab. This practice is called V nance. Buying a share of Warm Breeze stock would give Karim V the firm. In the event that Warm Breeze runs into financial difficulty, V will be paid first. Suppose Karim chooses to buy 250 shares of Warm Breeze stock. Which of the following statements are correct? Check all that apply. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Karim's shares to decline. The price of his shares will rise if Warm Breeze issues additional shares of stock. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Warm Breeze stock. Alternatively, Karim could undertake their financial investment by purchasing bonds issued by the government of Japan. Assuming that everything else is equal, a bond issued by the government of Japan most likely pays a V interest rate than a bond issued by a government that is engaged in a civil war