When Zynga, the company behind the social games CityVille and Words With Friends, sold stock to the public for the first time in December 2011, funds were being raised in a ________ market, and when those newly issued shares are resold to other
buyers, the sales take place in a ________ market.
A) primary; secondary B) secondary; secondary
C) secondary; primary D) primary; primary
A
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The Federal Reserve conducted the policy of quantitative easing primarily when
A) the interest rate was very sensitive to the change in the money supply. B) the interest rate was close to zero. C) the interest rate was relatively high. D) the interest rate was too erratic to be controlled.
Russia, Iran and Qatar made the first serious moves in October 2008 toward forming an OPEC-style cartel on natural gas. What is the goal of a cartel?
A) restrict output B) raise prices C) increase sales D) increase profits
What is the relationship between fiscal multipliers and the "zero lower bound"?
A) Fiscal multipliers cannot fall below zero. B) When monetary policy has hit the zero lower bound, fiscal multipliers are likely to be larger than normal. C) At the zero lower bound, a fiscal contraction is actually expansionary. D) At the zero lower bound, fiscal policy works by shifting the aggregate supply curve, rather than shifting the aggregate demand curve.
The coupon rate on newly issued bonds is usually ________ for bonds with favorable tax treatment, such as municipal bonds, and ________ for bonds that are very risky, such as junk bonds.
A. lower; higher B. higher; higher C. higher; lower D. lower; lower