D076 MODULE 2 QUESTIONS &
SOLUTIONS(RATED A+)
Corporate Bonds - ANSWERA debt instrument that is issued by a corporation in order
to raise capital.
stock - ANSWERA share of ownership in a corporation.
money market - ANSWERa type of financial market used for short-term assets that are
held for less than one year
capital market - ANSWERa type of financial market used for long-term assets that are
held for greater than a year
primary market - ANSWERA financial market in which new issues of a security are sold
to initial buyers.
syndicate - ANSWERa group of intermediaries that is used to oversee the issuance of
stock and/or bonds
secondary market - ANSWERmarket for reselling financial assets
What is the purpose of financial markets - ANSWERto determine the market price of
financial securities based on supply and demand and to provide liquidity
money market - ANSWERis for short-term borrowing/ lending
capital market - ANSWERis for long-term borrowing/ lending
A specialist - ANSWERprovides liquidity and lowers the cost of trading stocks between
sellers and buyers
In which financial market are securities such as stocks and bonds are traded after their
initial issuance? - ANSWERSecondary market
A large corporation is looking to merge with another large corporation. Which financial
institution can help them do this? - ANSWERInvestment bank
leading indicators - ANSWERchange before the economy changes and include yield
curve and stock market return
lagging indicators - ANSWERchange after the economy changes and include
unemployment rate and CPI
SOLUTIONS(RATED A+)
Corporate Bonds - ANSWERA debt instrument that is issued by a corporation in order
to raise capital.
stock - ANSWERA share of ownership in a corporation.
money market - ANSWERa type of financial market used for short-term assets that are
held for less than one year
capital market - ANSWERa type of financial market used for long-term assets that are
held for greater than a year
primary market - ANSWERA financial market in which new issues of a security are sold
to initial buyers.
syndicate - ANSWERa group of intermediaries that is used to oversee the issuance of
stock and/or bonds
secondary market - ANSWERmarket for reselling financial assets
What is the purpose of financial markets - ANSWERto determine the market price of
financial securities based on supply and demand and to provide liquidity
money market - ANSWERis for short-term borrowing/ lending
capital market - ANSWERis for long-term borrowing/ lending
A specialist - ANSWERprovides liquidity and lowers the cost of trading stocks between
sellers and buyers
In which financial market are securities such as stocks and bonds are traded after their
initial issuance? - ANSWERSecondary market
A large corporation is looking to merge with another large corporation. Which financial
institution can help them do this? - ANSWERInvestment bank
leading indicators - ANSWERchange before the economy changes and include yield
curve and stock market return
lagging indicators - ANSWERchange after the economy changes and include
unemployment rate and CPI
