The markets which reallocate liquid funds in relatively fixed amounts are classified as ___________?
Correct answer: C. secondary markets
- A. capital markets
- B. debt markets
- C. secondary markets
- D. primary markets
Explanation
Secondary markets trade previously issued securities and therefore reallocate funds among investors while providing liquidity. Primary markets instead channel new funds directly to the issuing organisation.
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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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