Which of the Following Statements Is CORRECT

question 16

Multiple Choice

Which of the following statements is CORRECT?

• A) Capital market instruments include both long-term debt and common stocks.
• B) An example of a primary market transaction would be your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift.
• C) The NYSE does not exist as a physical location; rather, it represents a loose collection of dealers who trade stocks electronically.
• 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.

---

Definitions:

Myelinated axons

Nerve fibers covered in myelin, a protective sheath that speeds up the transmission of electrical signals in the nervous system.

White matter

Tissue in the brain and spinal cord made up primarily of nerve fibers and is responsible for communication between different brain regions and between the brain and the spinal cord.

Neurotransmitter

A chemical within the vesicles of the synaptic knob that is released into the postsynaptic structures when a nerve impulse reaches the synaptic knob.

Synaptic knob

The expanded region at the end of an axon terminal, where neurotransmitters are released to communicate with other neurons or muscle cells.