2-18
FINANCIAL MARKETS AND INTEREST RATES
ANSWER KEY
1.
Match each market player with a description of his/her role. Write the letter of the
role next to the title of the market player.
Market Players
Roles
b
Investor
c
Issuer
a) Financial intermediary that buys and sells
securities
d
Broker
b) Entity with more money than it needs
a
Dealer
c) Entity in need of money
d) Financial intermediary that facilitates the
buying and selling of securities
2.
The most liquid, lower-risk securities are traded in the:
c) money market.
3.
QRS Manufacturing Company decides to "take the company public." This means it
will:
b) issue stock in the primary equity market.