1.

In the United States, which of these financial institutions arrange most primary market transactions for businesses?

a. Asset transformer

b. Direct transfer agents

c. Investment banks

d. Over-the-counter agents

2.

Which of these statements is true?

a. The higher the default risk, the higher the interest rate that security buyers will demand.

b. The lower the default risk, the higher the interest rate that security buyers will demand.

c. The default risk does not impact the interest rate that security buyers will demand.

d. The higher the default risk, the lower the interest rate that security buyers will demand.