Question 1.1.________ are markets in which funds are borrowed or loaned for periods of time that do not exceed one year. (Points : 20)

Capital markets Principal markets Assets markets Money markets

Question 2.2.After the value assessment, the investment banking firm may opt to underwrite the issue, which is basically a direct purchase of the stock. The investment banking firm gets the stock issue registered with the SEC, and gets the issue listed on either an organized exchange or the OTC market. At that point, the underwriter begins selling or placing the issue. This transaction is called the ________. (Points : 20)

preliminary stock sale original open market early unlimited posting initial public offering

Question 3.3.When a firm ________ in the primary market, it is raising equity. Firms can then take this money and use it for their business needs. (Points : 20)

borrows money develops reserves employs conservatism issues stock

Question 4.4.Firms trading on the organized exchanges have recognizable ________ and are capable of meeting the stricter listing requirements imposed by each exchange. (Points : 20)

financial objectives physical locations material objectives tangible financial benefits

Question 5.5.The ________ rate of return is the stated or quoted rate of interest. (Points : 20)

real specific nominal inflationary