Which of the Following Financial Assets Is Least Likely to Have

question 30

Multiple Choice

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

• A) Common stock of a large public 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:

Triangle Arbitrage

Triangle arbitrage involves exploiting an arbitrage opportunity resulting from a pricing discrepancy among three different currencies in the foreign exchange market.

Canadian Dollar

The official currency of Canada, represented by the symbol C$ or CAD, and is one of the world's major currencies traded in financial markets.

Currencies

Currencies are the system of money in general use in a particular country, region, or economic area, facilitating the exchange of goods and services.

Eurobond

International bonds issued in multiple countries but denominated in a single currency (usually the issuer’s currency).