Question

Which of the following instruments are traded in the capital markets? Check all that apply. Commercial paper Long-term bank loans Bankers’ acceptances Common stocks Eurodollar time deposits

Answer 1

Answer:

• Commercial paper
• Long-term bank loans
• Common stocks
• Eurodollar

Explanation:

The financial assets listed above can be traded in the capital market. Note that a capital market represents a place where savings and investments are transacted between

1. the suppliers who have capital and
2. buyers in need of capital.

Thus, an investor can decide which assets interests him or her.