Which of the Following Statements Is Correct

question 18

Multiple Choice

Which of the following statements is correct?

• A) An IPO is an example of a primary market transaction.
• B) Money markets are subject to wider price fluctuations and are therefore more risky than capital market instruments.
• C) A direct transfer of funds is more efficient than utilizing financial institutions.
• D) The market segmentation theory argues that the different investors have different risk preferences which determine the shape of the yield curve.

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Definitions:

Time Horizon Categories

The classification of planning or forecasting periods into short-term, medium-term, and long-term, based on their respective durations.

Short-Range

Pertaining to activities, planning, or forecasting that covers a relatively brief period of time, typically up to one year.

Medium-Range

Pertaining to the intermediate term, often in the context of planning, forecasting, or operations.

Long-Range

Pertaining to strategic decisions or actions that consider and impact a significant period into the future, often beyond the immediate or short term.