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Indicate the markets in which each of the following transactions will be traded: Description of Transaction Type of Market Karl spends $1,500 to buy Google
Indicate the markets in which each of the following transactions will be traded:
| Description of Transaction | Type of Market |
|---|---|
| Karl spends $1,500 to buy Google stock options through his online brokerage account. | Financial asset markets/ Physical asset markets |
| Description of Transaction | Type of Market |
|---|---|
| You need gasoline now, so you drive to the gas station and purchase 10 gallons of gasoline. | Spot markets/ Futures markets |
| Description of Transaction | Type of Market |
|---|---|
| Sheila saves $10,000 and buys a certificate of deposit (CD) that will mature in six months. | Capital markets/ 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. | Private markets/ Public markets |
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 . hedging/ speculating
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