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Primary dealers none of the listed answers are correct are small banks in the primary stage of development cannot trade securThe bid/ask spread is the price of that the dealer sells securities information liquidity demoninationWhich of the following would be most likely to use a financial market? A state government wishing to borrow to finance a highPrimary markets are markets where corporations and governments raise funds by issuing stocks or bonds through initial publicLiquidity Is the best available measure of the riskiness of an asset Is the ease with which an asset can be exchanged for monInvestment banks are true financial intermediaries since they create secondary securities True FalseWhich of the following is/are money market instrument(s)? Negotiable certificates of deposits Preferred Stocks 4-year maturitWhich of the following is NOT a service provided by financial intermediaries? Demonination intermediation Maturity intermediaLIBOR is tax-free rate on municipal bonds. the long-term bond rate on dollar demoninated bonds sold in Japan. the interest ra

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Answer #1

The correct answers have been done below -

1. Primary dealers -

d) trade securities directly with the Federal Reserve Bank.

2. The bid ask spread is the price of

Liquidity that dealer sells.

3. Which of the following would like to use a financial market -

a) a state government wishing to finance a highway project.

4. Investment banks are true financial intermediaries since they create secondary securities.

b) false, they create primary securities.

5. Which of the following is a money market instrument.

a) negotiable certificate of deposit

6. Which of the following is not a service provided by financial intermediaries ?

a) guaranteed return intermediation

7 . Libor is the rate

c) the interest rate that largest international banks charge each other for loans

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