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Summarizing.

Complete the following sentences to summarize the text above:

  1. Most of their activities companies finance by…

  2. If they need more money they…

  3. Bond-issuing companies are rated by private companies such as…

  4. Bonds are traded on the secondary market and their price fluctuates according to…

  5. A company deducts bond interest payments… paying tax, whereas dividends are paid…

  6. Governments issue bonds when public spending…

  7. As a way of regulating money supply the British and American central banks…

True-false questions:

  1. Companies finance most of their activities by way of internally generated cash flows.



  1. Companies do not issue their own bonds, because it is expensive.



  1. Bond-issuing companies are rated according to their financial situation and performance.



  1. The majority of bonds on the secondary market are traded below or above par.



  1. Governments also have the option of issuing equities.



  1. Long-term government bonds are known as gilt-edged securities.