What Is a Primary Market

question 44

Multiple Choice

What is a primary market?

• A)a market where primary inputs like steel are sold
• B)a market where you can sell any bonds you own as a private investor
• C)a market where a newly issued claims are sold to initial buyers by the borrowing firm
• D)a market where you can sell any stocks you own as a private investor

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Definitions:

Money Supply

The complete sum of available financial resources in an economy, including cash, coins, and the funds available in checking and savings accounts, at a particular instant.

Inflationary Tendencies

The general tendencies or trends towards increasing prices and diminishing purchasing power over time within an economy.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and ensuring stability of the financial system.

Recovery

Phase of business cycle during which real GDP increases from trough level to level of previous peak.