En The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) – Global Edition
Chapter 8 An Economic Analysis of Financial Structure

8.1 Basic Facts About Financial Structure Throughout the World

1) American businesses get their external funds primarily from
A) bank loans.
B) bonds and commercial paper issues.
C) stock issues.
D) loans from nonbank financial intermediaries.
Answer: D
Ques Status: Revised

2) Of the sources of external funds for nonfinancial businesses in the United States, loans from banks and other financial intermediaries account for approximately ________ of the total.
A) 6%
B) 40%
C) 56%
D) 60%
Answer: C
Ques Status: Previous Edition

3) Of the sources of external funds for nonfinancial businesses in the United States, corporate bonds and commercial paper account for approximately ________ of the total.
A) 5%
B) 10%
C) 32%
D) 50%
Answer: C
Ques Status: Previous Edition

4) Of the following sources of external finance for American nonfinancial businesses, the least important is
A) loans from banks.
B) stocks.
C) bonds and commercial paper.
D) loans from other financial intermediaries.
Answer: B
Ques Status: Previous Edition

5) Of the sources of external funds for nonfinancial businesses in the United States, stocks account for approximately ________ of the total.
A) 2%
B) 11%
C) 20%
D) 40%
Answer: B
Ques Status: Previous Edition

6) Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are true?
A) Stocks are a far more important source of finance than are bonds.
B) Stocks and bonds, combined, supply less than one-half of the external funds.
C) Financial intermediaries are the least important source of external funds for businesses.
D) Since 1970, more than half of the new issues of stock have been sold