Question 26 (1.66 points) The managers of a firm seek to obtain a loan from a lo

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Question 26 (1.66 points) The managers of a firm seek to obtain a loan from a local bank. They tell the bank's loan officer that the intend to use the funds to finance next month's payroll. This incident is an example of loan is intended to finance an expansion of the company, but in reality they The problem of the illiquidity of bank loans Banks failing to charge high enough interest rates on business loans The problem of asymmetric information A situation in which direct finance, rather than indirect finance should have been employed. Question 27 (1.66 points)

Explanation / Answer

Q.26 Option 3.As the firms manager are misleading the bank through their purpose of loan
Q.30 Option 3. It is source of funds to buy a car while it earns interests for bank
Q.32 Option 3. It is the service offered by the banking system
Q.3 Option 3. Savings-Real Investment = Surplus

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