Question

The ________ market is where pre-owned securities (not new issues) are traded and the ________ market is where securities are initially issued.

Select one:

a. money; capital

b. primary; secondary

c. primary; money

d. secondary; primary

Answer 1

Option d. That is:

The secondary market is where pre-owned securities(not new issues) are traded and the primary market is where securities are initially issues.

Reason: Primary market is where securities are created and issued for first time here companies sells its new stocks and bonds to the public by IPO(Initial Public Offering). Secondary market is also called as stock market where investors can trade that is buying and selling pre-owned securities, examples of stock exchange like BSE, NSE, Newyork Stock Exchange etc..  

These are not correct options you can go through reason infrant of the options.

a. money; capital Money market is where short term debts are traded. The period of money market instruments is less than a year. Money market Participants are government, corporations, banks and financial institutions which can barrow and lends the money for short period. Capital market is where long term assets one can trade in both stocks and bonds. Capital market Participants are like financial institutions, professional brokers and individual investors.

b. primary; secondary This option is vice versa compare to d, reason you can go through option b why its not correct.

c. primary; money Each market meaning you can go through option a and d. Primary market is right to fill (select) but money market is wrong so this option is not correct.