Which of the Following Financial Assets Might Be Least Likely

question 46

Multiple Choice

Which of the following financial assets might be least likely to have an active secondary market?

• A) Common stock of a large firm
• B) Bank loans made to smaller firms
• C) Bonds of a major, multinational corporation
• D) Debt issued by the U.S. Treasury

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Definitions:

Poor Countries

Nations with low levels of economic activity, low per capita income, and generally low standards of living.

Catch-Up Effect

The property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

Economic Growth Rates

The percentage increase in the market value of the goods and services produced by an economy over time, typically measured on an annual basis.

Saving Rate

The proportion of disposable income that is saved rather than spent on consumption of goods and services.