Page 95 - CAPE Financial Services Syllabus Macmillan_Neat

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6. A primary market is a financial market in which

(A) only short-term debt instruments are traded
(B) securities that have been previously issued can be resold
(C) only long-term debt instruments and equity instruments are traded
(D) new securities are issued and sold directly by the issuer to investors

7. A certificate of deposit is

(A) a money market instrument created in the course of carrying out international
trade

(B) a debt instrument sold by a bank to depositors at a fixed interest rate
(C) a short-term debt instrument issued by large well-known corporations
(D) a short-term debt instrument issued to finance federal government

8. A commercial paper is

(A) a money market instrument created in the course of carrying out international
trade

(B) a short-term debt instrument issued by large well-known corporations
(C) a debt instrument sold by a bank to depositors at a fixed interest rate
(D) a short-term debt instrument issued to finance federal government

9. A short-term debt instrument issued by firms that are guaranteed by a commercial bank
and as part of a commercial transaction is known as a

(A) Certificate of deposit
(B) Commercial paper
(C) Banker’s acceptance
(D) Repurchase agreement

10. In order to finance federal deficits, the US Treasury would issue

(A) US Government Securities
(B) US Government Agency Securities
(C) State and Local Government Bonds
(D) Local Government Bonds

11. A bond denominated in a currency other than that of the country in which it is sold is
called

(A) Foreign bond
(B) Eurobond
(C) Corporate bond

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