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Multiple Choice Quiz
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1
Derivatives are used to transfer risk.
A)True
B)False
2
The price of a financial instrument rises when a specified payment is made further in the future.
A)True
B)False
3
Previously owned stocks and bonds are sold in primary markets.
A)True
B)False
4
Treasury bills are sold in bond markets.
A)True
B)False
5
Financial institutions make it possible to match the desired time horizons for both borrowers and lenders.
A)True
B)False





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