Which of the Following Statements Is CORRECT

question 16

Multiple Choice

Which of the following statements is CORRECT?

• A) The most important difference between spot markets versus futures markets is the maturity of the instruments that are traded.Spot market transactions involve securities that have maturities of less than one year whereas futures markets transactions involve securities with maturities greater than one year.
• B) Capital market transactions involve only preferred stock or common stock.
• C) If General Electric were to issue new stock this year,this would be considered a secondary market transaction since the company already has stock outstanding.
• D) Both NASDAQ dealers and "specialists" on the NYSE hold inventories of stocks.
• E) Money market transactions do not involve securities denominated in currencies other than the U.S.dollar.

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Definitions:

Skill

The ability to do something well, typically resulting from talent, training, or practice.

Luck

The experience of notably positive, negative, or improbable events influenced by chance.

Generalization

The process by which an organism responds in the same way to different but similar stimuli.

Extinction

In psychology, the gradual diminishing of a conditioned response when the reinforcement is no longer presented; in biology, the permanent loss of species from the earth.