Question

1. Which of the following statements is true?

A. Pension funds are like mutual funds that trade on exchanges.

B. Life insurance companies typically underwrite corporation's initial public offering of stock.

C. Commercial banks are where people usually have their checking and saving accounts.

D. Investment banks specialize in mortgage lending.

2. Which of the following statements is true?

A. Corn is an example of a physical asset.

B. Money market instruments have original maturities greater than 1 year.

C. A corporate IPO is an example of a secondary market transaction.

D. Secondary markets are where corporations raise money by issuing new securities.

3. Which of the following statements is true?

A. Preferred stocks are money market securities.

B. Long-term corporate bonds are capital market securities.

C. The purchase of 300 shares of AT&T stock on the NYSE is example of a primary market transaction.

D. Hedge funds have traditionally been highly regulated.

Answer 1

1.

C. Commercial banks are where people usually have their checking and saving accounts.

2.

A. Corn is an example of a physical asset.

3.

B. Long-term corporate bonds are capital market securities.