The financial system, monetary data and interest rates.

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.

1. 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

2. 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