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 Arcadia, a blomedical research firm, is selling stocks to ralse money for a now lab. This practice is called finance. Buying a share of Arcadia stock would give Karim an IOU, or promise to pay, from the firm. In the event that Arcadia runs into financial difficulty, Karim and the other stockholders will be paid first. Suppose Karim chooses to buy 250 shares of Arcadia stock. Which of the following statements are correct? Check all that apply. An increase in the percelved profitablily of Arcadia will likely cause the value of Karim's shares to rise. The price of his shares will rise if Arcadia issues additional shares of stock. Arcadia earns revenue when Karim purchases 250 shares, even if he purchases them from an existing shareholder. Alternatively, Karim could undertake their financial investment by purchasing bonds issund by the govemment of Japan. Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a Interest rate than a bond issued by the government of Japan