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WorksheetsFinancial market
Total questions: 5
Worksheet time: 3mins
A financial intermediary is a corporation that takes funds from investors and then provides those funds to those who need capital. A bank that takes in demand deposits and then uses that money to make long-term mortgage loans is one example of a financial intermediary
True
False
Money markets are markets for
Foreign currencies.
Consumer automobile loans.
Long-term bonds.
Short-term debt securities such as Treasury bills and commercial paper
Which of the following statements is CORRECT?
The most important difference between spot markets versus futures markets is the maturity of the instruments that are traded. Spot market transactions involve securities that have maturities of less than one year whereas futures markets transactions involve securities with maturities greater than one year.
Capital market transactions involve only preferred stock or common stock.
Both Nasdaq dealers and "specialists" on the NYSE hold inventories of stocks.
Money market transactions do not involve securities denominated in currencies other than the U.S. dollar.
You recently sold 200 shares of Disney stock, and the transfer was made through a broker. This is an example of:
A money market transaction.
A primary market transaction
A secondary market transaction
A futures market transaction.
Which of the following is an example of a capital market instrument?
Commercial paper.
Preferred stock.
U.S. Treasury bills.
Banker's acceptances
