A "primary market" is a market

A) for government securities.
B) in which newly issued claims are sold to buyers by borrowers.
C) in which newly issued claims are sold by savers to borrowers.
D) for debt by large or "primary" corporations.

B

Economics

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Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets and liabilities are each 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1 = $US1. How was Argentina's net external wealth affected as a result of the devaluation of the peso (from P1 = $US1 to P3 = $US1)?

A) Net external wealth rose. B) Net external wealth fell. C) Net external wealth was not affected. D) One cannot determine how net external wealth was affected with the information provided

Economics

In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of "quantitative easing," where the Fed purchased billions of dollars of securities

What impact would quantitative easing have on the monetary base? A) The monetary base would increase. B) The monetary base would decrease. C) The monetary base would not change. D) While the monetary base would change, it is impossible to predict in which direction.

Economics