1. Which of the following statements about the OTC market is true?

A. An OTC market is an organized exchange where there is a central trading location.

B.	OTC security transactions are made on the floor of an exchange by traders.

C.	Securities that are not listed on an organized exchange are bought and sold on the OTC market.

D.	Securities that are listed on an organized exchange are bought and sold in the OTC market.

2. Which of the following theories states that security prices reflect all information, whether public or private?

A. Weak-form efficiency.

B.	Semistrong-form efficiency.

C.	Nominal-form efficiency.

D.	Strong-form efficiency.

3. Which of the following is a primary investment vehicle for the funds in which life insurance companies must invest?

A.Both equity securities and long-term corporate bonds.

B.

CDs.

C.	Equity securities.

D.	Long-term corporate bonds.

4. Large firms are most likely to use money markets for the following reason:

A. To make long term investments.

B.	To buy commercial paper at lower interest rates than it could sell through a bank.

C.	To finance long term investments.

D.	To adjust their liquidity position.

5. Which of the following is true of the New York Stock Exchange?

A. It is an organized exchange.

B.	It has no central trading location.

C.	It is an over-the-counter exchange.

D.	It can be used by all U.S citizens.

6. Which of the following is true of an efficient market?

A. Market prices of securities of companies in the same industry are all same.

B.	Market prices adjust quickly to new information as it becomes available.

C. All information contained in past prices of a security is reflected in its current price but that there is both public and private information that is not.

D.	Securities have no systematic risk.