1-The " Business sector's " demand for loanable funds is considered inelastic . a. False b True

2-The house-hold sector is the only deficit unit in the economy. a False Ob True

3-Stockbrokers tend to tend to experience smaller "spreads" during recessions. a . False

b.true

4-Required returns on bonds tend to be higher than required returns on stocks because bonds have higher risk. a False True

5-Corporate bond indentures include managerial restrictive covenants such as not being able to declare dividends without prior approval by trustees. O aFalse O b True