FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 31

d. Corporations step up their expansion plans and thus increase their
demand for capital.
e. The Federal Reserve uses monetary policy in an attempt to stimulate
the economy.
3. Which of the following statements is CORRECT?
a. If General Electric were to issue new stock this year it would be
considered a secondary market transaction since the company already
has stock outstanding.
b. Capital market transactions only include preferred stock and common
stock transactions.
c. The distinguishing feature between spot markets versus futures
markets transactions is the maturity of the investments. That is, spot
market transactions involve securities that have maturities of less than
one year, whereas futures markets transactions involve securities with
maturities greater than one year.
d. Both Nasdaq "dealers" and NYSE “specialists” hold inventories of
stocks.
e. An electronic communications network (ECN) is a physical location
exchange.
4. Which of the following statements is CORRECT?