Question

21. Which of the following is not a short-term debt instrument? Group of answer choices commercial...

21.

Which of the following is not a short-term debt instrument?

Group of answer choices

commercial paper

common stock

money market securities

Treasury bills




22.

Which of the following is a primary market transaction?

Group of answer choices

You sell 200 shares of IBM stock on the NYSE through your broker.

You buy 200 shares of IBM stock from your brother. The trade is not made through a broker—you just give him cash and he gives you the stock.

IBM issues 2,000,000 shares of new stock and sells them to the public.

One financial institution buys 200,000 shares of IBM stock from another institution. An investment banker arranges the transaction.



23.

Which of the following statements is CORRECT?

Group of answer choices

If you purchase 100 shares of Disney stock from your brother-in-law, this is an example of a primary market transaction.

If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.

The NYSE is an example of an over-the-counter market.

Only institutions, and not individuals, can engage in the derivatives markets.

As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Homework Answers

Answer #1

Ans 21) common stock

Common stock or equity shares are not debt instruments. They do not get fixed interest rates.

Ans 22) IBM issues 2,000,000 shares of new stock and sells them to the public.

Primary market transaction are stocks that are sold for the first time. These are also known as IPO (Initial Public offering)

Ans 23) As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Examples of money market instrument include commercial paper, certificate of deposit.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
‏____ 21. Which of the following statements is CORRECT? a. Hedge funds are legal in Europe...
‏____ 21. Which of the following statements is CORRECT? a. Hedge funds are legal in Europe and Asia, but they are not permitted to operate in the United States. b. Hedge funds have more in common with commercial banks than with any other type of financial institution. c. Hedge funds have more in common with investment banks than with any other type of financial institution. d. Hedge funds are legal in the United States, but they are not permitted to...
Which of the following is a primary market transaction? Group of answer choices a. Johnson &...
Which of the following is a primary market transaction? Group of answer choices a. Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker. b. You sell 200 shares of Johnson & Johnson stock on the NYSE through your broker. c. You buy 200 shares of Johnson & Johnson stock from your younger brother. You just give him cash and he gives you the stock d. the trade is not made...
‏____ 25. You recently sold to your brother 200 shares of Disney stock, and the transfer...
‏____ 25. You recently sold to your brother 200 shares of Disney stock, and the transfer was made through a broker, and the trade occurred on the NYSE. This is an example of: a. A futures market transaction. b. A primary market transaction. c. A secondary market transaction. d. A money market transaction. e. An over-the-counter market transaction. ‏____ 26. Which of the following statements is CORRECT? a. The New York Stock Exchange is an auction market with a physical...
Which of the following statements is CORRECT? a. While the distinctions are blurring, investment banks generally...
Which of the following statements is CORRECT? a. While the distinctions are blurring, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties. b. Capital markets deal only with common stocks and other equity securities. c. If an investor sells shares of stock through a broker, then it would be a primary market transaction. d. Home mortgage loans are traded in the money market. e. The New York Stock Exchange is an...
Answer all of these questions with the right question number next to the correct choice (letter)....
Answer all of these questions with the right question number next to the correct choice (letter). 7)Which of the following is NOT considered to be an example of direct placement of securities? A)You borrow $100 from your uncle Raymond and you write him an IOU for good measure. B)You buy 100 shares of Dell stock from your broker. C)Dell places a new bond issue in the market through Merryll-Lynch. D)You borrow $25,000 from your bank to purchase a fully loaded...
1. Secondary markets are markets used by corporations to raise cash by issuing securities for a...
1. Secondary markets are markets used by corporations to raise cash by issuing securities for a short time period. Group of answer choices True False 3. A corporation seeking to sell new equity securities to the public for the first time in order to raise cash for capital investment would most likely Group of answer choices conduct an IPO with the assistance of an investment banker. engage in a secondary market sale of equity. conduct a private placement to a...
19. The principal differences between capital markets and money markets are that: Group of answer choices...
19. The principal differences between capital markets and money markets are that: Group of answer choices money and capital markets deal in the same securities, the only difference is term both markets deal in short-term debt securities; however, capital markets deal also in equity securities which have an indefinite term money markets deal only in short-term government debt capital markets deal in long-term debt and equity securities, while money markets deal only in short-term debt 20. A bank issuing a...
‏____ 17. Which of the following statements is CORRECT? a. It is usually easier to transfer...
‏____ 17. Which of the following statements is CORRECT? a. It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship. b. Corporate shareholders are exposed to unlimited liability. c. Corporations generally face fewer regulations than sole proprietorships. d. Corporate shareholders are exposed to unlimited liability, and this factor may be compounded by the tax disadvantages of incorporation. e. There is a tax disadvantage to incorporation, and there is no way...
3. Which of the following is an example of a short-term decision? Group of answer choices...
3. Which of the following is an example of a short-term decision? Group of answer choices a. Whether to make a product or buy a product. b. Whether to run a promotion. c. Whether to increase prices during peak demand. d. Whether to offer discounted prices to senior citizens. e. All of the above are examples of short-term decisions.
1. Which of the following best describes the interest rate effect? Group of answer choices a...
1. Which of the following best describes the interest rate effect? Group of answer choices a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending. an increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending. an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending. an increase in the price...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT