True/False

16. A decrease in accounts receivables is categorized as a use of funds. 17. The primary market is the resale market for securities. 18. The Securities and Exchange Commission is the governmental body responsible for enforcing the rules and regulations governing the trading in securities. 19. The "base" interest rate is made up of the pure rate, an inflation adjustment, and a liquidity risk premium.

20. The time value of money means that a dollar today is worth less than a dollar at any time in the future. 21. Compound interest occurs when interest is earned on interest. 22. Because stocks rely on dividends as the principal source of cash flow, ascertaining stock prices is an easier and more precise process than the valuation of bonds, which relies on variable coupon payments. 23. Bond ratings are primarily based on the issuing firm's financial projections.