1) Which of the following is true about primary markets? A. The stock market is the primary market for stock 8. All capital markets are primary ma C. They are where a security is traded from one investor to another D. They are where a security is first issued to investors E. All money markets are primary markets 2. Which of the following is true about a balance sheet? A. It shows the stock return for a firm. 8 It measures expenses and profits over a period of time. C. It measures changes in assets and liabilities over a period of time. Diit measures expenses and profits at a point in time. E It measures the levels of assets and liabilities at a point in time 3.) The role of financial markets in the allocation of capital refers to: A The liquidity of financial markets