The ________ market is where securities are initially issued and the ________ market is where pre-owned securities (not new issues) are traded

A) primary; secondary
B) money; capital
C) secondary; primary
D) primary; money


A

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Refer to Figure 2.1. If the relative cost of aluminum were to rise, then the production possibilities frontier would

a. become steeper. b. become flatter. c. shift inward in a parallel manner. d. shift outward in a parallel manner.

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When determining the amount of interest to be paid on a bond, which of the following information is not necessary?

a. The face amount of the bonds b. The selling price of the bonds c. The face rate of interest on the bonds d. The length of the interest period, annually or semiannually

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Which statement is not true regarding the relationship between reliability and validity?

A) If a measure is perfectly valid, it is also perfectly reliable. B) Unreliability implies invalidity. C) If a measure is perfectly reliable, it is perfectly valid. D) Reliability is a necessary, but not sufficient, condition for validity.

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The convention of consistency pertains to the use of the same accounting principles by firms in the same industry

Indicate whether the statement is true or false

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