Is the obtaining of a car loan a primary or secondary market transaction?
What will be an ideal response?
The obtaining of a car loan is a primary market transaction since the loan represents a newly-issued instrument by the bank.
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The aggregate supply curve
a. indicates the markup at which firms are willing to supply a given level of output b. is derived from equilibrium conditions in the money market c. has a positive slope because an increase in real GDP causes an increase in the cost of resources d. is found by summing up the supply curves of all the firms in an economy e. illustrates how a change in the price level affects total output
Consider a market that is in equilibrium. If it experiences both an increase in demand and a decrease in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both rise. B. quantity will definitely rise, while the equilibrium price cannot be predicted. C. price will definitely rise, while the equilibrium quantity cannot be predicted. D. price and quantity will both fall.