Question

In: Finance

Which of the following statements is NOT correct?


Which of the following statements is NOT correct? 

Select one: 

Deficit spending units raise funds by issuing financial claims in the primary market. 

A financial claim has one issuer but possibly successive owners through the secondary market 

Owners of financial claims can sell them in the secondary market before maturity date. 

Owners of financial claims can sell them in the primary market.

Solutions

Expert Solution

Owners of financial claims can sell them in the primary market.

The financial claim of the owners' can not sell then in to the primary market, before the maturity date, it can be sell in the secondary market.

Therefore, it is considered as a not correct statement.

In order to raise funds for deficit spending units, the financial claims can be issued in the primary market. The successive owners through the secondary market is possible. Thus, these are correct statements.

jeff jeffy answered 2 years ago
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