Which of the Following Statements Is CORRECT

question 8

Multiple Choice

Which of the following statements is CORRECT?

• A) The New York Stock Exchange is an auction market with a physical location.
• B) Capital market transactions involve only the purchase and sale of equity securities, i.e., common stocks.
• C) If an investor sells shares of stock through a broker, then this would be a primary market transaction.
• D) Consumer automobile loans are evidenced by legal documents called "promissory notes, " and these individual notes are traded in the money market.
• E) While the distinctions are blurring as investment banks are today buying commercial banks, and vice versa, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties.

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Definitions:

Amortize

The process of spreading out a loan or an intangible asset cost over a specific period of time for accounting and tax purposes.

Accumulated Depreciation

The total depreciation that has been applied to a fixed asset since it was acquired, representing the loss of value over time.

Balance Sheet

A financial record showing the balance of assets, liabilities, and equity of shareholders of an enterprise on a specific date.

Fair Market Value

The price that a property would sell for on the open market, between a willing buyer and a willing seller.