Which of the Following Statements Is CORRECT

question 33

Multiple Choice

Which of the following statements is CORRECT?

• A) The most important difference between spot markets versus futures markets is the maturity of the instruments that are traded. Spot market transactions involve securities that have maturities of less than one year whereas futures markets transactions involve securities with maturities greater than one year.
• B) Capital market transactions involve only preferred stock or common stock.
• C) If General Electric were to issue new stock this year, this would be considered a secondary market transaction since the company already has stock outstanding.
• D) Both Nasdaq dealers and "specialists" on the NYSE hold inventories of stocks.
• E) Money market transactions do not involve securities denominated in currencies other than the U.S. dollar.

---

Definitions:

Memory Chips

Electronic components used in devices for the purpose of data storage and processing.

Ordering Quantity

If this term refers to "Economic Order Quantity," it is a decision tool used in supply chain management to determine the optimal order size that minimizes total inventory costs.

Inventory Value

Inventory Value is the total cost associated with the goods and materials held by a company to produce or sell for profit.

Clothiers

Businesses or individuals specializing in the selling of clothing.