Question

Which of the following statements is CORRECT? If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction. Only institutions, and not individuals, can engage in derivative market transactions. If you purchase 100 shares of Disney stock from your brother-in-law, this is an example of a primary market transaction. The NYSE is an example of an over-the-counter market. As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Answer 1

The answer is: As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Step-by-step explanation:

Money market transactions involve financial instruments with high liquidity and short-term maturities. Usually the securities have a one year or less maturity date.

A few examples of commonly traded securities are:

• Banker’s Acceptance
• Treasury Bills
• Repurchase Agreements
• Certificate of Deposits
• Commercial Papers