18) A call option gives the owner the right to buy the underlying asset at a fixed price 5) right to sell the underlying asset at a fixed price - obligation to sell the underlying asset at a fixed price obligation to buy the underlying assetat a fixed price 19) That segment of the mar 19) ment of the market for securities which have original maturities of mon which have original maturities of more than one year is called the A) stock market C) capital market B) money market. D) derivative securities market 20) That segment of them 20) in one year is segment of the market for securities which have original maturities of less than one year is called the A) derivative securities market. B) money market. C) capital market. D) stock market 21) 21) An example of a financial instrument in the capital market is A) a negotiable bank CD. B) a U.S. Treasury bill C) a corporate bond. D) commercial paper. 22) 22) A business firm that has temporary surplus funds is most likely to buy A) U.S. Treasury bills. B) corporate bonds C) U.S. Treasury bonds. D) corporate stock. 23) 23) Which of the following is not a financial intermediary? A) A commercial finance company B) A commercial bank D) An index fund C) An investment bank 24) 24) Which of these financial institutions is the most likely to have a portfolio very similar to those of life insurance companies? A) Property and casualty insurance companies B) Mutual savings banks C) Money market mutual funds D) Private noninsured pension funds 25 25) are concentrated on the East Coast and have a relatively long history of making nonmortgage consumer loans. A) Credit unions B) Commercial banks C) Savings and loan associations (S&Ls) D) Savings banks 26) Consumer finance companies specialize in A) residential mortgages. C) corporate stock. B) financial disintermediation. D) consumer loans. 27) Savings banks are very similar to A) finance companies. C) money market mutual funds. B) savings and loan associations (S&Ls). D) bond mutual funds