7-Suad decided to sell her stocks amounting to OMR 200,000 in the secondary market, as she received information that the current market price is higher. Which role of Financial Market is demonstrated in this situation?

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: The Basic Tools Of Finance
Section: Chapter Questions
Problem 6CQQ
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7-Suad decided to sell her stocks amounting to OMR 200,000 in the secondary market, as she received information that the current market price is higher. Which role of Financial Market is demonstrated in this situation?

a.
None of the options

b.
Price Discovery

c.
Information availability

d.
Both A and B

 

 

 

6-In which market is the financial instrument's value based on the value of an underlying asset?

a.
Derivative market

b.
Stock market

c.
Primary market

d.
Bond market

 

 

 

5-The difference between the deposit rate and the lending rate of a bank represents its:

a.
Profit

b.
Reserves

c.
Total income

d.
Total Expenditure

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