Question 1
In the capital market, households ________ savings and firms ________ funds.
◦ demand; supply
◦ demand; demand
◦ supply; supply
◦ supply; demand
Question 2
Households receive bonds when they
◦ purchase a share of ownership in firms.
◦ sell shares of a firm's stock.
◦ lend money directly to firms.
◦ borrow money from financial institutions.