5. An important financial institution that assists in the initial sale of securi

Question

5. An important financial institution that assists in the initial sale of securities in the
primary market is the: (Points : 3)        investment bank
       commercial bank
       money market mutual
       stock exchange Question 6.6. Which statement does not describe banker's acceptances? (Points : 3)        It is an order to pay a specified amount of money to the bearer on a given date.
       It is a relatively new money market security, having developed only in the late 1970s, but having expanded continuously since.
       They can be bought and sold until they mature, i.e., there is a relatively active secondary market.
       Their primary use is in international trade 5. An important financial institution that assists in the initial sale of securities in the
primary market is the: (Points : 3)        investment bank
       commercial bank
       money market mutual
       stock exchange

Explanation / Answer

Answer 5.
An Important financial institution that assists in the initial sale of securities in the primary market is the describe banker's acceptances Investment bank.

Investment bank act as an intermidiate between the companies and public by its financial transactions like underwiting, etc which helps in getting initial sale of securities into primary mrket through IPO.



Answer 6.
Statement that does not describe banker's acceptances is:
It is a relatively new money market security, having developed in the late 1970's, but having expanded continously since

Bankers accpetance were devloped since 12th century and are in function of helping trades to finance its bills.

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