Which of the following statements best describes financial markets?
A)Capital market instruments include both long-term debt and common stocks.
B)Banker's acceptance has no default risk.
C)Foreign banks are more restricted from operating in Canada.
D)The original maturity of a commercial loan can go up to 10 years.

Question

Quizplus · Accepted Answer

Financial markets refer to the various types of markets where securities, commodities, currencies, and other financial instruments are bought and sold. Capital market instruments generally have long-term maturities and include both debt securities and equity securities, such as common stock.

B, C, and D are incorrect statements that do not accurately describe financial markets.

Which of the Following Statements Best Describes Financial Markets