QUESTION 1 The following statement best describes which characteristic of financial markets? "transactions are worked out directly between two parties Futures Market Secondary Market Public Market Private Market Money Market Capital Market Spot Market Primary Market QUESTION 2 Which of the following is a disadvantage of general partnerships It is not always easy to transfer ownership Owners are entitled to all of the firm profits Liability of owners is limited to invested funds Double taxation of dividends Access to funds from multiple sources or partners Click Save and Submit to save and submit. Click Save All Answers to save all answers esc F1 F2 F3 2 3 5 6 QUESTION 3 Derivatives are commonly used to reduce risk and/or bet on the direction of future prices or rates. These activities are called hedging and speculating hedging and insuring insuring and securitizing equitizing and marketing QUESTION 4 Identify the form of capital market efficiency based on the following statement Current market prices reflect all information contained in past price movements Weak form efficiency Semistrong form efficiency Strong.form efficiency Inefficiency None of the above QUESTION 7 All else equal, more frequent compounding results in which of the following? higher future values fewer number of periods per year lower effective annual rates higher present values