Which of the following statements is CORRECT?
A) The New York Stock Exchange is an auction market,and it has a physical location.
B) Home mortgage loans are traded in the money market.
C) If an investor sells shares of stock through a broker,then it would be a primary market transaction.
D) Capital markets deal only with common stocks and other equity securities.
E) While the distinctions are blurring,investment banks generally specialize in lending money,whereas commercial banks generally help companies raise capital from other parties.

Question

Quizplus · Accepted Answer

The New York Stock Exchange is an example of an auction market, where buyers and sellers come together physically to trade securities.

Answer: E
 Investment banks traditionally have focused on providing advisory and underwriting services for corporations, while commercial banks primarily lend money and provide deposit-taking services to consumers and businesses. However, in recent years, the lines between these two types of banks have blurred, with many commercial banks offering investment banking services and many investment banks expanding into commercial banking activities.

The other answer choices are incorrect:
B) Home mortgage loans are typically traded in the bond market.
C) Selling shares through a broker can be either a primary market or secondary market transaction, depending on whether the shares are newly issued or previously issued. 
D) Capital markets also deal with debt securities, such as bonds.

Which of the Following Statements Is CORRECT