1. What advantages does the issuance of debt have over other sources of funds that a business firm might pursue? How about disadvantages? 2. Explain how the true cost of a corporate bond may be determined. 3. What is a leveraged buyout? A junk bond? What are the dangers associated with these financial devices and instruments? 4. What are the essential characteristics of common stock? 5. What are the principal differences between trading in stocks over the counter and trading on an organized exchange? How would you rate these two markets in terms of their advantages for the small investor? The large investor? 6. Into what broad categories is consumer borrowing normally divided? Which category is most important and why? 7. Discuss the factors that influence the volume of borrowing by individuals and families. What role do you believe inflation plays in the borrowing and savings decisions of households today? 8. What is Truth in Lending? Describe the law’s major provisions and explain why it was enacted in the first place.