applies psychology to financial decision making. d. explains why markets are efficient. 2- Those financial markets that facilitate the flow of short-term funds are known as a. money markets. b. capital markets. c. primary markets. d. secondary markets. 3- Funds are provided to the initial issuer of securities in the: a. secondary market. (b. primary market. c. deficit market. d. surplus market. 4- Investors in equity securities may earn return from a. coupon payments and the return of principal at the maturity date. b. coupon payments and a capital gain when they sell the securities. c. quarterly dividends (if paid) and a capital gain when they sell the securities. d. quarterly dividends (if paid) and the return of principal at the maturity date. 5- Money market securities generally have a relatively low liquidity, low expected return, and a high degree of credit risk. b. relatively high liquidity, high expected return, and a high degree of credit risk. e. relatively low fiquidity, high expected return, and a low degree of credit risk. d relatively high liquidity, low expected return, and a low degree of credit risk. 6- The Securities Act of 1933 a. required complete disclosure of relevant financial information for publicly offered securities in the primary market. b. declared trading strategies to manipulate the prices of public secondary securities illegal. c. imposed heavy penalties for insider trading