Exam (elaborations)
WGU C201 Business Acumen Chapter 16 (QUESTIONS WITH 100- CORRECT ANSWERS)
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WGU C201 Business Acumen Chapter 16 (QUESTIONS WITH 100- CORRECT ANSWERS)
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WGU C201 | BusinessAcumen | Chapter 16
(QUESTIONS WITH
100% CORRECT
ANSWERS)
Understanding the financial system - answer
Households, businesses, government, financial
institutions, and financial markets together form
what is known as the financial system.
Securities - answer Also called financial
instruments, securities represent obligations on
the part of the issuers, businesses, and
governments, to provide the purchasers with
expected or stated returns on the funds invested
or loaned.
Money market instruments - answer Short-term
debt securities issued by corporations, financial
institutions such as banks, and governments.
, Bonds - answer By selling bonds, the seller obtains
long-term debt capital. Bonds are sold by the U.S.
Treasury, municipalities, and corporations.
Quality ratings for bonds - answer Standard &
Poor's and Moody's rate corporate and municipal
bonds with regard to risk. Higher risk bonds must
pay higher interest to attract investors.
Stock - answer Corporations generate equity
capital when they sell stock and when stockholders
actually own a piece of the corporation.
Corporations may issue, common stock, preferred
stock, or convertible securities.
The primary market - answer Markets in which new
issues of securities are sold to the public for the
first time.
The secondary market - answer These markets
include the New York Stock Exchange (NYSE), the
American Stock Exchange (AMEX), NASDAQ, and
regional and foreign stock exchanges. In these
secondary markets, securities are traded between
investors.
The New York Stock Exchange - answer The NYSE
or "Big Board" is the largest secondary market in
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