Question

Which of the following is true?

1) Non-U.S. firms may desire to issue bonds in the United States due to less regulation there.
2) U.S. firms may desire to issue bonds in the United States due to less regulation there.
3) U.S. firms may desire to issue bonds in non-U.S. markets due to less regulation in some other countries.
4) Non-U.S. firms may desire to issue bonds in the United States due to less regulation there AND U.S. firms may desire to issue bonds in the United States due to less regulation there.

Answer 1

Non-U.S. firms and U.S. firms may both desire to issue bonds in the United States due to less regulation.

Step-by-step explanation:

The correct statement is: Non-U.S. firms may desire to issue bonds in the United States due to less regulation there AND U.S. firms may desire to issue bonds in the United States due to less regulation there.

Both non-U.S. firms and U.S. firms may desire to issue bonds in the United States due to less regulation there. The U.S. financial markets have a reputation for being less regulated compared to some other countries, which can make it more attractive for firms to issue bonds in the United States.

For non-U.S. firms, issuing bonds in the United States can provide access to a larger pool of investors and potentially lower borrowing costs. For U.S. firms, issuing bonds domestically can provide them with easier access to capital and potentially lower regulatory burdens compared to issuing bonds in non-U.S. markets.