_ 1. Which of the following are ways in which business can access capital[money] a. Sell stock b. Issue bonds c. Borrow money from banks d. All of the above \\ _ 2. When an investor places their money in a wide variety of investments (different stocks, different bonds, etc.) to reduce risk, they are engaging in a. Diversication. b. Investing. c. Short-selling. d. Discounting bonds. _ 3. Governments and private companies issue bondsto a. Raise money to finance projects or expansions. b. Receive interest payments on the bonds. c. Gain profits as the value of the stock increases. d. Give other people ownership in the business. _ 4. Why do people invest in[purchase] bonds? a. The value of the bond increases or decreases dramatically over time. b. The bondholder receives interest payments based on the initial value of the bond. Bonds offer a risk-free investment. (1. Bonds are a highly liquid form of money. 9