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:

Production Possibilities Frontier

A curve depicting the maximum attainable combinations of two products that a society can produce with available resources and technology.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-offs between the two commodities.

Computers

Electronic devices that process, store, and output information, capable of executing complex algorithms and tasks.

Tested

The process of examining or evaluating something to determine its characteristics, quality, or performance.