Part B:MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 11)
Question:
Part B:MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
11)
The essential role of ________ is to bring together the net users of funds and the net savers of funds.
A) financial marketsB) primary markets
C) financial claimsD) financial institutions
12)
Financial claims are also known as:
A) financial securities.B) financial instruments.
C) financial assets.D) all of the above.
13)
Which of the following is FALSE regarding the secondary market?
A)
The secondary market represents trading in already existing financial claims.
B)
Secondary markets provide necessary liquidity to the market.
C)
Transactions in the secondary market affect the total component of financial assets that exist in the economy.
D)
Secondary markets reduce the risk of investing in financial claims.
14)
An example of a primary market transaction is:
A)A sale of some existing ordinary shares.
B)A new issue of ordinary shares.
C)A company repurchasing its own shares from shareholders.
D)All of the above.
15)
The ________ market refers to all institutions and procedures that provide for transactions in long-term financial instruments.
A) moneyB) primaryC) capitalD) secondary