The market for trading newly issued securities

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Reference no: EM131595839

1. Which financial market role gives investors the opportunity to hedge their risk of loss?

Price discovery

Risk management

Liquidity function

Provision of transaction services

2. Which of the following countries is NOT a member of the G8 group of nations? YOU SHOULD KNOW THIS.

United States

United Kingdom

China

Japan

Germany

3. Which of the following financial assets is a money market asset?

Preferred stock

Common stock

10-year government bond

All of the above are money market assets

4. The payments function of the financial system is designed to provide a means to store purchasing power until needed at a future date for spending on goods and services.

True

False

5. The ____ enables the trading of contracts that grant the RIGHT to buy or sell certain securities at pre-specified prices within a certain time.

Options market

Forward market

Futures market

Spot market

6. The financial system and financial markets are responsible for providing which of the following services?

Credit services

Payment services

Liquidity

Facilitating the flow of savings

All of the above

7. The market for trading newly issued securities is known as the:

money market

cash market

spot market

primary market

open market

Reference no: EM131595839

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