Which of the Following Statements Best Describes Financial Markets

question 31

Multiple Choice

Which of the following statements best describes financial markets?

• A) Capital market transactions involve only the purchase and sale of equity securities, i.e., common stocks.
• B) If an investor sells shares of stock through a broker, then this would be an indirect finance transaction.
• C) Money market mutual funds have high degree of default risk.
• D) Commercial papers have maturities longer than one year.

---

Definitions:

Statistical Tests

Procedures used in statistics to determine whether hypotheses about data sets can be supported or refuted.

Natural Phenomena

Events or physical occurrences in the natural world that are not influenced by human beings.

Empirical

Relies on, deals with, or can be proven through watching or undergoing something firsthand rather than through theoretical or strictly logical means.