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Financial Markets Quiz

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Questions and Answers

Which type of financial market facilitates the issuance of new securities?

Secondary Markets
Primary Markets (correct)
Tertiary Markets
Quaternary Markets

What is one of the major economic functions of financial markets?

Price Stabilization
Price Manipulation
Price Discovery (correct)
Price Discrimination

What do financial institutions do?

Obtain funds from the government
Obtain funds from lenders or investors (correct)
Obtain funds from the stock market
Obtain funds from borrowers or debtors

What is one of the costs associated with financial transactions?

<p>Cost of search and information (B)</p> Signup and view all the answers

What do primary market transactions provide?

<p>Funds to the initial issuer of securities (D)</p> Signup and view all the answers

Flashcards

Primary Market Function

Facilitates the issuance of new securities.

Financial Market Function

Establishes prices for assets.

Financial Institution Role

Obtains funds from lenders or investors to lend or invest further.

Financial Transaction Cost

Includes costs of locating and evaluating options.

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Primary Market Role in Issuance

Provides funds to first-time issuers of securities.