1. Financial institutions in the U. S. economy Suppose Clancy would like to use $9,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose RoboTroid, a robotics firm, is selling stocks to raise money for a new lab—a practice known as finance. Buying a share of RoboTroid stock would give Clancy the firm. In the event that RoboTroid runs into financial difficulty, will be paid first. Suppose Clancy decides to buy 100 shares of RoboTroid stock. Which of the following statements are correct? Check all that apply.

(A) The Dow Jones Industrial Average is an example of a stock exchange where he can purchase RoboTroid stock.
(B) The price of his shares will rise if RoboTroid issues additional shares of stock.
(C) Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Clancy's shares to decline.

Alternatively, Clancy could make a financial investment by purchasing bonds issued by the government of Japan. Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a interest rate than a bond issued by the government of Japan.