Question

1. In financial markets, participants who receive more money than they spend, such as investors, would be considered: A. deficit units B. noncompliant units C. surplus units D. indiscernible units represent ownership in a firm or company. A. debt securities B. equity securities C. derivatives securities D. credit securities 3. Facebook shares currently trade in the stock-market under the symbol FB. If Ms. Jones decides to purchase 1,000 shares at the current market price, the transaction would occur in the: A. primary markets B. secondary markets C. derivatives markets D. options markets 4. The degree to which securities can easily be sold without a loss of value is known as: A. default B. liquidity C. credit D. debit 5. Debt securities that have a maturity of one year or less are known as: A. money market securities B. equities market securities C. derivatives market securities D. capital market securities 5. Mortgage-backed securities are an example of: A. equities market securities B. capital market securities C. derivatives market securities D. money market securities

Answer 1

1)

Those participants who receive more money than they spend are known as Surplus units.

Answer is C) Surplus Units

2)

Equity securities represent residual ownership in the company after debt holders are paid off.

Answer is B) Equity securities

3)

Any purchase and sale of equity securities for trading is conducted in the secondary market.

Answer is B) Secondary markets.

4)

Whenever a security can be easily sold or purchased without loss of value, it is called liquidity .

Answer is B) Liquidity

5)

Those Debt securities having maturity of one year or less in known as Money market security and mostly traded in by financial institutions

Answer is A) Money market securities

6)

Mortgage backed securities are examples of derivatives market security as their underlying asset is home mortgage.

Answer is C) Derivatives market securities