For each of the following financial instruments, list every way that you can cat
ID: 1133525 • Letter: F
Question
For each of the following financial instruments, list every way that you can categorize them. In other words, list if they are direct finances, indirect finance, a debt instrument, an equity instrument, traded on primary market, traded on secondary market, a money market instrument, and/or capital market instrument.
a. A 30 year United States bond that a person purchases from their bank.
_________________________
b. Stock in a United States company that a person purchases from another person (who already owns the stock) at the New York Stock Exchange. A broker helps match the two people.
_________________________
c. A repurchase agreement between a corporation and a bank.
_________________________
d. A 3-month t-bill (United States bond) that a person purchases from Treasury Direct (the U.S. Treasury).
_________________________
Explanation / Answer
A-) THe asnwer is INDIRECT FINANCE.
B-) The asnwer is Traded on secondary market.
C-) The asnwer is A Debt Instrument.
D-) The asnwer is Money Market Instrument.
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