FINANCIAL
MARKETS AND INTEREST RATES 2-17
4
PROGRESS CHECK 2
Directions: Select the one best answer for each question, unless otherwise indicated.
Check your responses with the Answer Key on the next page.
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
____ Investor
____ Issuer
a) Financial intermediary that buys and sells
securities
____ Broker
b) Entity with more money than it needs
____ 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:
_____ a) bond market.
_____ b) equity market.
_____ c) money market.
_____ d) derivative market.
3. QRS Manufacturing Company decides to "take the company public." This means
it will:
_____ a) sell bonds to the public through the debt market.
_____ b) issue stock in the primary equity market.
_____ c) offer certificates of deposit in the money markets.
_____ d) derive its funding from the derivatives market.