1. Please explain what is meant by the statement: The Financial Markets are a supplemental funds source for business. What factors appear to affect the volume of business fund-raising from the money and capital markets?

(b) Please define each of the following terms having to do with business borrowing:

Indenture Sinking Fund

Call Privilege Mortgage Bond

Subordinated Debenture Industrial Development Bond (IDB)

Income Bond Debenture

Trustee Equipment Trust Certificate

(c) What exactly is fiscal policy? Debt Management policy?

(d) What is meant by the term CROWDING OUT EFFECT? What does recent research say about the link between government deficit, interest rates and inflation?