Which of the Following Statements Is CORRECT

question 6

Multiple Choice

Which of the following statements is CORRECT?

• A) The NYSE does not exist as a physical location.Rather it represents a loose collection of dealers who trade stock electronically.
• B) An example of a primary market transaction would be your uncle transferring 100 shares of Walmart stock to you as a birthday gift.
• C) Capital market instruments include both long-term debt and common stocks.
• D) If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles,this would be a primary market transaction.
• E) While the two frequently perform similar functions,investment banks generally specialize in lending money,whereas commercial banks generally help companies raise large blocks of capital from investors.

---

Definitions:

Criterion Validity

The extent to which a measure is related to an outcome.

Quality

The degree to which a set of inherent characteristics fulfills requirements or expectations.

Type

A category or classification, often used to describe different forms or variations of objects, conditions, or phenomena.

Predictive Ability

The capability of a model or score to accurately forecast or estimate the likelihood of future outcomes or behaviors.