Which of the following statements is incorrect? In contrast to public markets, private markets involve direct transactions between two parties, and the transactions in private markets are often called private placements. The rate that we actually observe in the marketplace at a given time is unadjusted for inflation and is called the nominal rate of interest. Investment banks sell protection against loss of property from fire, theft, accidents, and other causes. Investment funds, such as mutual funds, sell shares to investors and use the funds to purchase securities. All the answers are correct except one