1. Which answer below describes a financial market? A. A market that facilitates the sale of short term debt securities by deficit units to surplus units B. A market that facilitates the transfer of existing securities between investors. C. A market in which financial assets (securities) such as stocks and bonds are bought and sold _D. All of the above 2. What is the role of financial markets? A. To provide funds to the Federal Reserve Member Banks B. To transfer funds from those parties who have excess funds to those parties who need funds C. To provide surplus units with funds D. To provide deficit units with investment opportunities 3. What is the difference between a primary and a secondary market? _A. A primary market facilitates the issuance of new securities, secondary markets facilitate the trading of existing securities. _B. A primary market facilitates the trading of existing securities, while the secondary market facilitates the issuance of new securities C. A primary market is for deficit units and a secondary market is for surplus units D. None of the above 4. What is the difference between money market and capital market securities? A. Capital markets facilitate the sale of short term debt securities, money markets facilitate the sale of long term securities. B. Money markets are for surplus units and capital markets are for deficit units _C. Money markets facilitate the sale of short-term debt securities, capital markets facilitate the sale of long term securities D. All or the above