Multiple Choice worth 3 points each.
Identify the choice that best completes the statement or answers the question. Please write legibly. If letters are illegible, you will not receive credit. No choice is used more than once.
Matching Section A
a.
Physical Asset Markets.
f.
Capital Markets.
b.
Financial Asset Markets.
g.
Primary Markets.
c.
Spot Markets.
h.
Secondary Markets.
d.
Futures Markets.
i.
Private Markets.
e.
Money Markets.
j.
Public markets.
____ 1. Standardized stock contracts trade on the 15 established stock exchanges in the U.S. What is the name given to these markets?
____ 2. Valero, an oil refiner, has refined all the crude oil delivered on its long term contracts and still cannot meet the demand from its gas stations for gasoline. It will likely turn to which markets to purchase more crude oil for early delivery next week.
____ 3. A market where products such as corn, land and lumber are bought and sold.
____ 4. If Aetna Corporation want to buy 100,000 shares of Intel and the Yale Endowment has 100,000 shares of Intel for sale, Aetna could negotiate with Yale to complete this transaction. What is the market in which this transaction would occur?
____ 5. A soybean farmer is concerned about the volatility in prices and would like to lock in a price for his Fall harvest in April when he plants the crop. He would look to what markets to do this.
____ 6. Sprucewood Industries is a private corporation that is interested in going public to raise capital for expansion. Its IPO will be issued in what markets.
____ 7. If you want to buy shares of Microsoft, there are a number of exchanges where you could make this purchase. What are these markets where existing shares are traded called?
____ 8. A market where derivatives, mortgages and stocks are bought and sold.
____ 9. Bill Patterson, CEO of a small tech firm needs