Question

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 auction market, and it has a physical location.

Homework Answers

Answer #1

The New York stock exchange is An auction market and it will have a physical location. The New York stock exchange will be maintaining a physical trading floor at Wall Street which is used for trading and hence it is An auction market having physical location.

All the other options in relation to capital market along with home mortgage and investment banks are false

Correct answer will be option (e) the New York stock exchange is an auction market and it has a physical location.

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