PART A: THE FINANCIAL SYSTEM
For each of the following, state whether the transaction most directly involves. Select the correct response for each question #1-5.
- Jaqueline purchases $2500 in General Motors stock through her broker. General Motors is traded on NYSE.
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a. Direct finance Indirect finance
b. Debt market Equity market
c. Primary market Secondary market N/A (not direct finance)
d. Exchange OTC N/A (not secondary market)
e. Money market Capital market
- Dean invests $4,000 in his pension which is invested in small cap companies.
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a. Direct finance Indirect finance
b. Debt market Equity market
c. Primary market Secondary market N/A (not direct finance)
d. Exchange OTC N/A (not secondary market)
e. Money market Capital market