1 pts Which of the following statements is incorrect? Brokers are market specialists who do not bear the risk of owning securities. All the answers are correct except one. The secondary markets are not well known to the general public because they are wholesale markets and the sales take place outside of the public view. The nominal rate of interest is composed of two parts: (1) the real rate of interest and (2) the expected rate of inflation. Examples of real assets are plant and equipment. Question 37 1 pts Which of the following statements is correct? The present value of a dollar becomes greater the farther into the future that dollar is to be received. Compounding is the process by which interest earned on an investment is spent so that in future periods, interest is not earned on the interest previously earned as well as the original depreciation amount. All the answers are correct. The time value of money is based on the idea that most people prefer to consume goods tomorrow rather than consume similar goods today. The time value of money implies that a dollar received today is worth more than a dollar to be received in the future because funds received today can be invested to earn a return. Question 24 1 pts (TRUE or FALSE?) In today's financial markets, the best example of an annuity is the preferred stock issued by firms. True O False Question 25 1 pts (TRUE or FALSE?) If you pay the same amount every month on a car loan for a period of three years, then the stream of cash flows is called a perpetuity. True O False