Questions with Answers - Financial Markets and Institutions | FINA 4400, Study notes of Financial Market

Download Questions with Answers - Financial Markets and Institutions | FINA 4400 and more Study notes Financial Market in PDF only on Docsity! FINA 4400 Additional Examples: Chapter 1 1. Primary markets are markets where users of funds raise cash by selling securities to funds suppliers. TRUE 2. The NYSE is an example of a secondary market. TRUE 3. Money markets are the markets for securities with an original maturity of 1 year or less. TRUE 4. There are three types of major financial markets today; primary, secondary and derivatives markets. The NYSE and NASDAQ are both examples of derivatives markets. FALSE 5. A corporation seeking to sell new equity securities to the public for the first time in order to raise cash for capital investment would most likely A. conduct an IPO with the assistance of an investment banker B. engage in a secondary market sale of equity C. conduct a private placement to a large number of potential buyers D. place an ad in the Wall Street Journal soliciting retail suppliers of funds E. none of the above 6. The diagram below is a diagram of the A. secondary markets B. primary markets C. money markets D. derivatives markets E. commodities markets 7. Which of the following is/are capital market instruments? A. 10 year Corporate Bonds B. 30 year Mortgages C. 20 year Treasury Bonds D. 15 year U.S. Government Agency Bonds E. All of the above