A Primary Financial Market Is

question 79

Multiple Choice

A primary financial market is:

• A) located only in New York, London, and Tokyo but can handle transactions anywhere in the world.
• B) one where the borrower obtains funds directly from the lender for newly issued securities.
• C) a market where U.S. Treasury bonds are traded.
• D) one that can only deal in the highest investment grade securities.

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Definitions:

Foreign Demand

The desire and willingness of buyers in other countries to purchase goods and services from a particular nation.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified period.

Motorcycle Imports

Refers to the bringing in of motorcycles from foreign countries into a domestic market usually subject to tariffs, quotas, and regulations.

Quantity Imported

This refers to the total amount of goods brought into a country from abroad for commercial purposes.