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</p> Signup and view all the answers

    What do primary market transactions provide?

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

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