Financial markets improve economic welfare because

A. A corporation takes out loans from a bank.

B. People buy shares in a mutual fund.

C. A corporation buys commercial paper in a secondary market.

D. All of the above.

E. Only A and B of the above

A. investment bank.

B. commercial bank.

C. stock exchange.

D. brokerage house.

A. A corporations stock is traded in an over-the-counter market.

B. People buy shares in a mutual fund.

C. A pension fund manager buys commercial paper in the secondary market.

D. An insurance company buys shares of common stock in the over-the-counter markets.

E. None of the above

A. A corporations stock is traded in an over-the-counter market.

B. A corporation buys commercial paper issued by another corporation.

C. A pension fund manager buys commercial paper from the issuing corporation.

D. Both A and B of the above.

E. Both B and C of the above

A. They both can be long-term financial instruments.

B. They both involve a claim on the issuers income.

C. They both enable a corporation to raise funds.

D. All of the above.

E. Only A and B of the above

A. A bond is a long-term security that promises to make periodic payments called dividends to the firms residual claimants.

B. A debt instrument is intermediate term if its maturity is less than one year.

C. A debt instrument is long term if its maturity is ten years or longer.

D. The maturity of a debt instrument is the time term) that has elapsed since it was issued