A primary financial market is:
A. a market where U.S. Treasury bonds are traded.
B. one that can only deal in the highest investment grade securities.
C. one where the borrower obtains funds directly from the lender for newly issued securities.
D. located only in New York, London, and Tokyo but can handle transactions anywhere in the world.
Answer: C
You might also like to view...
Between 1981 and 1986, as the federal budget deficit increased,
A. consumption spending fell. B. investment spending was crowded out. C. net exports increased. D. net exports were crowded out.
When inflation equals the value determined by past expectations and pricing decisions and output equals the level of short-run equilibrium output consistent with that inflation, the economy is said to be in ________ equilibrium.
A. full-employment B. potential C. short-run D. long-run
Which of the following support the idea that monetary policy should be made by a rule?
a. the political business cycle and the time-inconsistency problem b. the political business cycle but not the time-inconsistency problem c. the time-inconsistency problem, but not the political business cycle d. neither the political business cycle nor the time-inconsistency problem
It is often reported by financial news reports that higher interest rates reduce automobile sales. If this is true, we can expect
A. fiscal policy to be more effective. B. both fiscal and monetary policy to be more effective. C. monetary policy to be more effective. D. neither fiscal nor monetary policy to be more effective.