11 + BIUA 2 3 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 ocks, different bonds, etc.) to reduce risk, they are engaging in Diversification. b. Investing. C. Short-selling. d. Discounting bonds. 3. Governments and private companies issue bonds to 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. c. Bonds offer a risk-free investment. d. Bonds are a highly liquid form of money. 5. Why do some investors prefer to put their money into low-return investment options, e savings accounts? a. Savings accounts are seen as a low risk investment. b. Savings accounts have potential for high rates of growth. c. Savings accounts are less liquid than stocks or bonds. d. All of the above are accurate. 6. A share of a company's stock is a. A portion of ownership in a corporation. b. A promise to earn a guaranteed yearly interest rate. C. A promise to repay debt at a future date. d. The ability to manage the company's day to day affairs