1. Financial market participants who provide funds are called a. deficit units. b. surplus units. c. primary units. d. secondary units. 2. Which of the following is NOT an issuer of bonds? a. households b. corporations c. the U.S. Treasury d. government agencies 3. Those financial markets that facilitate the flow of short-term funds are known as: a. money markets b. capital markets c. primary markets d. secondary markets 4. Which of the following is a capital market instrument? a. a six-month certificate of deposit b. a three-month Treasury bill c. a ten-year bond d an agreement for a bank to loan funds directly to a company for nine months 5. Investors in equity securities may earn a return from a coupon payments and the return of principal at the maturity date. b. coupon payments and a capital gain when they sell the securities. e quarterly dividends (if paid) and a capital gain when they sell the securities. d. quarterly dividends (if paid) and the return of principal at the maturity date. 6. If security prices fully reflect all available information, the markets for eflect all available information, the markets for these securities are: a. efficient b. primary c. overvalued d. undervalued