Which of the Following Statements Is CORRECT

question 6

Multiple Choice

Which of the following statements is CORRECT?

• A) The NYSE does not exist as a physical location.Rather it represents a loose collection of dealers who trade stock electronically.
• B) An example of a primary market transaction would be your uncle transferring 100 shares of Walmart stock to you as a birthday gift.
• C) Capital market instruments include both long-term debt and common stocks.
• D) If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles,this would be a primary market transaction.
• E) While the two frequently perform similar functions,investment banks generally specialize in lending money,whereas commercial banks generally help companies raise large blocks of capital from investors.

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Definitions:

War Powers Act

Law passed in 1973, reflecting growing opposition to American involvement in the Vietnam War; required congressional approval before the president sent troops abroad.

Congressional Approval

The process by which proposed laws, appointments, and other measures are formally agreed upon or sanctioned by the U.S. Congress, which consists of the Senate and the House of Representatives.

Presidential Election

A process in countries with a presidential system where citizens vote to elect the President of the country, usually through direct or indirect means.

Richard Nixon

The 37th President of the United States, whose tenure is marked by significant foreign diplomacy and the Watergate scandal leading to his resignation.