The financial institutions having loans swapped for bonds can sell all the bonds in ___________?
Correct answer: D. secondary markets
- A. under-developed markets
- B. developed markets
- C. primary markets
- D. secondary markets
Explanation
Bonds that have already been issued can be resold by financial institutions in the secondary market. The primary market is where securities are sold for the first time.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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