Which of the Following Transactions Occurs in the Primary Market

question 3

Multiple Choice

Which of the following transactions occurs in the primary market?

• A)A managed fund sells some Optus shares it owns.
• B)Mr Grey buys Commonwealth Bank shares listed on the ASX.
• C)The Federal government sells Treasury bonds to finance road infrastructure.
• D)Mrs Thompson sells government bonds to a dealer.

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Definitions:

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply and pricing of a unique product or service.

Negative Externalities

Unintended and unfavorable side effects of an economic activity that affect third parties not involved in the activity.

Majority Voting

A voting system where decisions are made based on the preference of more than half of the votes cast, commonly used in elections and organizational decision-making.

Moderately Priced Bouquet

A flower arrangement that is priced at a level considered reasonable or average, not too expensive or too cheap.