the economics of money, banking, and financial markets

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9. 
   

   A financial market in which previously issued securities can be resold is called a ____
   market.
   A) primary
   B) secondary
   C) tertiary
   D) used securities
   Answer: B
   Diff: 1 Type: MC Page Ref: 20
   Skill: Recall
   Objective List: 2.2 Explain why financial markets are classified as debt and equity markets etc.

   
   


10. 
    

    When an investment bank ____ securities, it guarantees a price for a corporation's
    securities and then sells them to the public.
    A) underwrites
    B) undertakes
    C) overwrites
    D) overtakes
    Answer: A
    Diff: 1 Type: MC Page Ref: 20
    Skill: Recall
    Objective List: 2.2 Explain why financial markets are classified as debt and equity markets etc.

    
    


11. 
    

    Which of the following is not a secondary market?
    A) Foreign exchange market
    B) Futures market
    C) Options market
    D) Primary market
    Answer: D
    Diff: 1 Type: MC Page Ref: 20
    Skill: Recall
    Objective List: 2.2 Explain why financial markets are classified as debt and equity markets etc.

    
    


12. 
    

    ____ work in the secondary markets matching buyers with sellers of securities.
    A) Dealers
    B) Underwriters
    C) Brokers
    D) Claimants
    Answer: C
    Diff: 1 Type: MC Page Ref: 20
    Skill: Recall
    Objective List: 2.2 Explain why financial markets are classified as debt and equity markets etc.