The Secondary Securities Market Is BEST Described by Which of the Following

question 86

Multiple Choice

The secondary securities market is BEST described by which of the following?

• A) It is a substandard market.
• B) It is a new issue market.
• C) It is a market for securities that are not allowed in the primary market.
• D) It is a market in which previously issued securities are traded.

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Definitions:

Deregulation

The process of reducing or eliminating government controls and restrictions in an industry to enhance efficiency and competition.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that provides insurance protection to depositors in US banks.

Mortgage-Backed Security

A claim on payments made on the many mortgages bundled into this financial instrument.

Monthly Payments

Regular payments made monthly, often in the context of loans or mortgages, covering interest and possibly part of the principal.