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Secondary markets are important because they provide funds directly to deficit spending units (DSUs).

A) True
B) False

Correct Answer

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Deposits in a credit union by a household are an example of direct finance.

A) True
B) False

Correct Answer

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Pension funds transfer spending power from the work period to the retirement period.

A) True
B) False

Correct Answer

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SSUs may prefer intermediated financing to direct financing if they are seeking liquidity and safety for their investments.

A) True
B) False

Correct Answer

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OTC markets are not very important any more.

A) True
B) False

Correct Answer

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verified

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