the economics of money, banking, and financial markets

346 #

© 2014 Pearson Canada Inc.#

5. 
   

   When a firm is issuing new securities, this is called a(n) ____.
   A) investment-grade issue
   B) seasoned issue
   C) initial public offering
   D) secondary issue
   Answer: C
   Diff: 1 Type: MC Page Ref: 282
   Skill: Recall
   Objective List: 12.4 Understanding the operation of securities markets

   
   


6. 
   

   A(n) ____ is an example of a security which is currently selling on the market.
   A) seasoned issue
   B) new issue
   C) IPO issue
   D) current issue
   Answer: A
   Diff: 1 Type: MC Page Ref: 282
   Skill: Recall
   Objective List: 12.4 Understanding the operation of securities markets

   
   


7. 
   

   The financial market where a corporation or government issues securities is called ____.
   A) a money market
   B) a mercantile exchange
   C) a debt market
   D) a primary market
   Answer: D
   Diff: 1 Type: MC Page Ref: 282
   Skill: Recall
   Objective List: 12.4 Understanding the operation of securities markets

   
   


8. 
   

   The market in which previously issued securities can be resold is called ____.
   A) a secondary market
   B) a resale market
   C) a debt market
   D) an exchange market
   Answer: A
   Diff: 1 Type: MC Page Ref: 282
   Skill: Recall
   Objective List: 12.4 Understanding the operation of securities markets