D076 Module 2 Exam Questions With
Revised Answers
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 f...
Corporate Bonds - answer✔✔A debt instrument that is issued by a corporation in order to raise
capital.
stock - answer✔✔A share of ownership in a corporation.
money market - answer✔✔a type of financial market used for short-term assets that are held for
less than one year
capital market - answer✔✔a type of financial market used for long-term assets that are held for
greater than a year
primary market - answer✔✔A financial market in which new issues of a security are sold to
initial buyers.
syndicate - answer✔✔a group of intermediaries that is used to oversee the issuance of stock
and/or bonds
secondary market - answer✔✔market for reselling financial assets
What is the purpose of financial markets - answer✔✔to determine the market price of financial
securities based on supply and demand and to provide liquidity
money market - answer✔✔is for short-term borrowing/ lending
capital market - answer✔✔is for long-term borrowing/ lending
A specialist - answer✔✔provides 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? - answer✔✔Secondary market
Money circulates through financial institutions in 2 ways - answer✔✔1) individuals and
organizations lend and borrow money
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brightstars. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
