Homework (Ch 26) 1. Financial institutions in the U.S. economy Suppose Kenji would like to use $2,000 of his savings to make a financial investment. One way of making a financial investment is to...

Extracted text: Homework (Ch 26) 1. Financial institutions in the U.S. economy Suppose Kenji would like to use $2,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling bonds to raise money for a new lab-a practice known as debt v finance. Buying a bond issued by Touch Tech would give Kenji an IOU, or promise to pay, from v the firm. In the event that Touch Tech runs into financial difficulty, Kenji and the other bondholders ▼ will be paid first. Suppose instead Kenji decides to buy 100 shares of Touch Tech stock. Which of the following statements are correct? Check all that apply. V Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Kenji's shares to decline. O The price of his shares will rise if Touch Tech issues additional shares of stock. O The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock. Alternatively, Kenji could make a financial investment by purchasing bonds issued by the U.S. government. Assuming that everything else is equal, a municipal bond issued by a state most likely pays a higher v interest rate than a corporate bond issued by an electronics manufacturer. 的内容