What Happens in the Secondary Market

question 356

Multiple Choice

What happens in the secondary market?

• A) secondary inputs like electricity are sold
• B) a corporate financial manager will raise funds for expansion of the firm
• C) newly issued claims are sold by the borrowing firm to the initial buyer
• D) already issued claims are sold from one investor to another

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Definitions:

Normative Economic Statement

A statement that reflects opinions or judgments about what ought to be in economics, focusing on the desirability of certain economic policies or outcomes.

Minimum Wage

The lowest legal wage that employers are allowed to pay their workers, set by law to ensure a minimum standard of living for employees.

Federal Government

The national government of a federated state, which holds the central political authority in a federal system.

Positive Statement

An objective statement based on factual information that can be tested or verified rather than based on opinions or norms.