Which of the Following Statements Is CORRECT

question 16

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:

Histogram

Graphic representation of a frequency distribution using bars to represent each score or group of scores.

Interval Scale

A scale of measurement that shows the order of values and the exact differences between them, but without a true zero point.

Ordinal Scale

A scale of measurement where data is ordered, but the differences between data points cannot be assumed to be equal.

Statistical Treatments

Methods applied to data for the purpose of drawing conclusions or making inferences, including statistical tests and computations.