Which of the following statements about the

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9) Which of the following statements about the characteristics of debt and equity are true? A) They can both be long-term financial instruments. B) They both involve a claim on the issuer’s income. C) They both enable a corporation to raise funds. D) All of the above E) Only (A) and (B) of the above Answer: D 10) Which of the following are long-term financial instruments? 11) Which of the following are short-term financial instruments? 10
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12) Which of the following are short-term financial instruments? 13) Which of the following are primary markets? A) The New York Stock Exchange B) The U.S. government bond market C) The over-the-counter stock market D) The options markets E) None of the above Answer: E 14) Which of the following are secondary markets? 15) A corporation acquires new funds only when its securities are sold 16) Intermediaries who are agents of investors and match buyers with sellers of securities are called 17) Intermediaries who link buyers and sellers by buying and selling securities at stated prices are called A) investment bankers. B) traders. C) brokers. D) dealers. E) none of the above. Answer: D 11 18) An important financial institution that assists in the initial sale of securities in the primary market is the 19) Which of the following statements about financial markets and securities are true?
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