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.

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Definitions:

False Alarms

Incorrect or mistaken alerts, typically referring to a warning signal that goes off inappropriately, suggesting an event or danger that is non-existent.

Misses

In a cognitive or perceptual task, failures to detect or respond to stimuli present.

Signal-Detection Theory

A framework used in psychology and cognitive neuroscience to explain how decisions are made under conditions of uncertainty, distinguishing between the ability to discern between information-bearing patterns and random noise.

Dim Light

A low level of illumination; light that is not bright or intense.