Which of the Following Statements Is CORRECT

question 38

Multiple Choice

Which of the following statements is CORRECT?

• A) Capital market instruments include both long-term debt and common stocks.
• B) An example of a primary market transaction would be your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift.
• C) The NYSE does not exist as a physical location; rather, it represents a loose collection of dealers who trade stocks electronically.
• 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.

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Definitions:

China

A country in East Asia, the world's most populous nation, known for its rich history, culture, and its significant role in the global economy and politics.

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, characterized by diverse cultures, languages, and histories among its countries.

Collectivism

A cultural or social outlook that emphasizes the importance of groups and collective identity over individual action or identity.

Individualism

An orientation in social philosophy that emphasizes the precedence of personal discretion over collective or governmental oversight.