In this workout, we're taking a quick look at a number of statements here regarding the European and the US debt markets. Are these statements correct or incorrect? First up, US debt markets are less efficient than their European equivalent markets. Well, that statement is clearly incorrect. It's the opposite that is true. US debt markets tend to be more efficient than the European equivalent markets, so a bigger proportion of US debt is traded in the markets than in Europe. In Europe, on the other hand, a bigger proportion of the debt is direct debt with banks, so it's bank debt instead. Europe has a tradition of going directly to the banks to borrow money, so this is incorrect.

Second up, US debt markets are larger than the European debt markets. Well, it follows from what we previously said that this is correct.

Third up, US companies source a larger proportion of finance from the debt markets compared to European companies. That's of course, correct then.

And finally, US companies source approximately equal amounts of finance from the debt securities markets and bank loans. Yes, we know that roughly the same amount of debt outstanding is traded in the securities markets as the total outstanding value of bank loans in America, so that's also correct.