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1. Financiat institutions in the U.S. economy Suppose Chartes would the to use $4,000 of his savings to make a financial invertment. One way of

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1. Financiat institutions in the U.S. economy Suppose Chartes would the to use $4,000 of his savings to make a financial invertment. One way of making a financial investment is to purchase stock or bonds from a peivate company. Suppose fiobotroid, a robotics firm, is seling bonds to rase monev for a new lab-a practice known as faance. Goming a bend iswed by Robotrold would give Charles. oifficulty. the firm. In the event that Robotroid runs into tinanciel will be paid first: Suppose instead Charles decides to buy 100 shares of Robotroid stock. Which of the following statements are correct? Check as that appl. An increase in the perceived profitability of Robotroid wit likelv cause the value of Charles's shares to rise Robotroid eams cevenue when Charles purchases 100 wares, even it he purchases them from as exsting starehoudec Expectations of a recession that will reduce economywide corporate protis wit ikny cause the value of Charier's shares to dectine. Alternatively, Charles could make a finandal investment by purchasing bonds issued by the U. 8 . goverement. Assuming that everything else is equal, a municipai bond issued by a state most tiketr pars a interest rete than a corporte bond ssued

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