Reference no: EM132615930

The explain do not need too many words?

1. A high-tech start-up can sell ordinary shares to the public to raise funds easily." Is this statement true, false or uncertain? Explain.

2. "Under the liquidity premium theory, if inflation is expected to be falling over the next few years, long-term interest rates will be higher than short-term interest rates." Is it true, false or uncertain? Explain.

3. "Consider those countries that have a reserve requirement. The actual money multiplier is generally less than the inverse of the required reserve ratio." Is it true, false or uncertain? Explain.

4. "In Australia and New Zealand, only commercial banks can accept deposits." Is the statement true, false or uncertain? Explain.

5. "If a firm changes some of the manager's cash salary to share options of the firm, then the agency problem between the manager and the shareholders of the firm will be reduced, whereby the shareholders will always be better off." Is this statement correct? Explain.