Which of the Following Is True of Secondary Securities

question 150

Multiple Choice

Which of the following is true of secondary securities?

• A)They include equities,bonds,and other debt claims.
• B)They are backed by the real assets of corporations issuing them.
• C)They are securities that back primary securities.
• D)They are securities issued by FIs.

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Definitions:

Fixed Prices

Prices that do not change in response to market conditions.

Corporate Taxes

Government levies placed on the earnings or profits of businesses.

Economic Environment

The total of economic factors, such as employment, income distribution, and investment opportunities, that influence the behavior of consumers and businesses.

Smoot-Hawley

Refers to the Smoot-Hawley Tariff Act of 1930, which raised U.S. import tariffs on thousands of goods, leading to significant trade reductions worldwide.