Question

Which of the following statements is CORRECT?
a. If you purchase 100 shares of Disney stock from your brother-in-law, this is an example of a primary market transaction.
b. If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.
c. The NYSE is an example of an over-the-counter market. Only institutions, and not individuals, can engage in derivative market transactions.
d. As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Answer 1

Answer:

The answer is: D) As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Explanation:

Money market transactions involve the trading of financial instruments with high liquidity and short-term maturities (usually less than one year). The financial instruments traded include; treasury bills (T Bills), commercial papers issued by companies and certificates of deposit (CDs).