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5) This is an example of a derivatives market transaction.
Question 2
Which of the following statements is CORRECT?
1) While the distinctions are blurring, investment banks generally
specialize in lending money, whereas commercial banks generally help
companies raise capital from other parties
2) A liquid security is a security whose value is derived from the price of
some other "underlying" asset
3) Money market mutual funds usually invest most of their money in a
well-diversified portfolio of liquid common stocks.
4) Money markets are markets for long-term debt and common stocks.
5) The NYSE operates as an auction market, whereas the Nasdaq is a
dealer market
Question 3
Which of the following statements is CORRECT?
1) The NYSE does not exist as a physical location; rather it represents a
loose collection of