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The most important and least important source of external funding for Country US; Country G; Country J; Country C.
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Explanation of Solution
The most important source of external funding for Country US is non-bank loans. Whereas Country G, Country J, and Country C prefer bank loans for external funding.
The least important source of external funding for Country US, Country J, and Country Cis stocks and for Country G is bonds.
Bank loans are an important source of external financing for the other countries except for Country US and stocks are least important for other countries except for Country G.
Introduction:External financing refers to the funds raised from the issue of bonds, stock, debentures, and loans, which are considered external sources. Interest or dividends are the cost of external financing.
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Chapter 8 Solutions
EBK ECONOMICS OF MONEY, BANKING AND FIN
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