Exam 2: The Financial Market Environment

The Glass-Steagall Act was imposed to allow commercial and investment banks to combine and work together.

Most businesses raise money by selling their securities in a

In a ________ market, the buyer and seller are brought together to trade securities in an organization called ________.

In general, most corporate capital gains are taxed at ________ tax rate.

A primary market is a financial market in which pre-owned securities are traded.

Which of the following serve as intermediaries channeling the savings of individuals, businesses and governments into loans and investments?

The Glass-Steagall Act

Sub-prime mortgages are mortgage loans made to borrowers the high incomes and better than average credit histories.

Financial markets are intermediaries that channel the savings of individuals, businesses and government into loans or investments.

Which of the following is NOT a financial institution?

Unlike the organized exchanges, the OTC makes a market in both outstanding securities and new public issues, making it both a secondary and a primary market.