Description of Transaction

Type of Market

Mr$.$ and Mrs$.$ Smith buy a new house in Walnut Creek, California. They paid the entire amount, $$800,000,$ in cash.

Description of Transaction

Type of Market

A farmer agrees to sell $10,000$ bushels of wheat at the rate of $$4\mathrm{.}50$ per bushel to a buyer $q,$

in three months. A regulated exchange, such as the Chicago Board of Trade, completes the transaction.

Description of Transaction

Type of Market

Abbey allocates $80\%$ of her portfolio for investments in short$-$term US Treasury bills.

Money markets

Description of Transaction

Type of Market

The state of California issues new bonds to the public with an investment bank serving as the underwriter to raise capital.

A corn processor in Nebraska has decided to purchase a futures contract for corn. The contract will increase in value if the price of corn rises, thereby offsetting the processors' increased costs$/$decreased net income. In this example, the corn processor is $q,$

Which of the following instruments are traded in the capital markets? Check all that apply.

Common stocks

Commercial paper

Certificates of deposit

Long$-$term bank loans

Treasury bills