Question

Which of the following statements is CORRECT?
a. Money markets are markets for long-term debt and common stocks.
b. A liquid security is a security whose value is derived from the price of some other "underlying" asset.
c. The NYSE operates as an auction market, whereas NASDAQ is an example of a dealer market.
d. While the distinctions are becoming blurred, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties.
e. Money market mutual funds usually invest their money in a well-diversified portfolio of liquid common stocks.

Answer 1

Answer:

Which of the following statements is CORRECT?

c.- The NYSE operates as an auction market, whereas NASDAQ is an example of a dealer market.

Explanation:

The New York Stock Exchange (NYSE) is one of the world's foremost auction markets.

The way opening and closing prices are set to continue to be based on supply and demand in a modern-day auction-style format.