a.
To identify: Whether the given instruments are the
Introduction:
Money Market: A market where the companies issue the highly liquid or short-term securities is known as money market.
Capital Market: A market where the companies are registered and issue the long-term debt and equity securities to the public. Primary market and secondary market are the type of capital market. Capital market mainly raises the long-term finances.
b.
To identify: Whether the given instruments are the money market securities or capital market securities.
Introduction:
Money Market: A market where the companies issue the highly liquid or short-term securities is known as money market.
Capital Market: A market where the companies are registered and issue the long-term debt and equity securities to the public. Primary market and secondary market are the type of capital market. Capital market mainly raises the long-term finances.
c.
To identify: Whether the given instruments are the money market securities or capital market securities.
Introduction:
Money Market: A market where the companies issue the highly liquid or short-term securities is known as money market.
Capital Market: A market where the companies are registered and issue the long-term debt and equity securities to the public. Primary market and secondary market are the type of capital market. Capital market mainly raises the long-term finances.
d.
To identify: Whether the given instruments are the money market securities or capital market securities.
Introduction:
Money Market: A market where the companies issue the highly liquid or short-term securities is known as money market.
Capital Market: A market where the companies are registered and issue the long-term debt and equity securities to the public. Primary market and secondary market are the type of capital market. Capital market mainly raises the long-term finances.
e.
To identify: Whether the given instruments are the money market securities or capital market securities.
Introduction:
Money Market: A market where the companies issue the highly liquid or short-term securities is known as money market.
Capital Market: A market where the companies are registered and issue the long-term debt and equity securities to the public. Primary market and secondary market are the type of capital market. Capital market mainly raises the long-term finances.
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Chapter 2 Solutions
FUND. OF FINANCIAL MGMT CONCISE (LL)
- Which of the following are money market instruments? Check all that apply. Common stocks Commercial paper Corporate bonds Treasury bills Preferred stocks A financial instrument whose value is derived from the value of an underlying asset is called a (Speculation, hedge, derivative)arrow_forwardIdentify investments as an investment in either debt (D) securities or equity (E) securities. U.S. Treasury bondsarrow_forwardThe money market is the market in which ________ are traded. new issues of securities previously issued securities short-term debt instruments long-term debt and equity instrumentsarrow_forward
- Distinguish the following financial markets. Provide examples of the type and/or nature of the securities traded in the market. Debt v/s Equity Market OTC v/s Organised Exchangearrow_forwardFinancial markets may be categorized as: (1) debt securities markets, (2) equity securities markets, (3) derivative securities markets, and (4) foreign exchange markets. Indicate in which of these markets the following securities trade: a. mortgages b. bonds c. common stocks d. interest rate swaps e. currenciesarrow_forwardWhich of the following fixed income securities has the highest level of risk? Which one has the highest level of liquidity? a. treasury bonds b. agency bonds c. corporate bonds d. municipal bondsarrow_forward
- Compare and contrast the stock market from bond market. Stock Market Bond Marketarrow_forwardWhich of the following is an example of long term instruments? (select all that apply) a. Asset backed securities b. Commercial paper С. Repo d. Treasury billarrow_forwardClassify the following financial instruments as money market securities or capital market securities: Banker’s acceptances Commercial paper Common stock Corporate bonds Mortgages Negotiable certificates of deposit Repurchase agreements U.S. Treasury bills U.S. Treasury notes Federal fundsarrow_forward
- Financial markets may be categorized as (1) debt securities markets, (2) equity securities markets, (3) derivative securities markets,and (4) foreign exchange markets. Indicate in which of these marketsthe following securities trade. a. Mortgagesb. Bondsc. Common stocksd. Currenciesarrow_forwardWhich of the following is the basis for fixing the price of securities in the financial market? a. Government b. Demand and Supply in the Market c. Seller of the Financial Instrument d. The issuer of the Instrumentsarrow_forwardCommercial paper markets are trading a. Municipal bonds b. Private company bonds c. Federal Reserve bonds d. Treasury bonds For a commercial bank, to calculate its profitability we may look at a. Equity Ratio b. Return on assets c. Return on investment d. US Treasury bond holdingsarrow_forward
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