A Difference Between the Primary Market and the Secondary Market

question 26

Multiple Choice

A difference between the primary market and the secondary market is

• A)Liquidity
• B)That primary markets allow corporations,government units,and others to raise needed funds for the expansion of their capital base
• C)Price competition in the secondary markets between different risk-return classes enables the primary market to price new issues at higher prices to reflect existing risk-return relationships
• D)The secondary market is much more competitive than the primary market.

Identify the main categories of federal spending and sources of tax revenue.

Describe the relationship between government fiscal policies and economic output.

Understand the definition and characteristics of progressive, regressive, and proportional taxes.

Identify and describe the primary sources of federal revenue.

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Definitions:

Ethical Use

The responsible and morally right utilization of resources, information, or power, adhering to established codes of conduct.

Threatening

Expressing or implying a menace or danger, often intended to intimidate or coerce someone into action or inaction.

Rosabeth Moss Kanter

A professor of business at Harvard Business School known for her research on strategy, innovation, and leadership for change.

Symbols of Power

Objects, actions, or titles that represent authority, influence, and command within a given context, signaling status and control.