The correct answer is: B. secondary markets
A secondary market is a market in which existing financial instruments are traded. This is in contrast to a primary market, in which new financial instruments are issued. Secondary markets are important because they provide liquidity to investors, allowing them to buy and sell assets easily.
Physical location exchanges and telephone networks are two types of secondary markets. Physical location exchanges are physical places where buyers and sellers meet to trade assets. Telephone networks are electronic systems that allow buyers and sellers to trade assets over the phone.
Money markets are markets for short-term debt instruments, such as Treasury bills and commercial paper. Capital markets are markets for long-term debt instruments, such as bonds and stocks. Long-term markets are not a type of secondary market.
Here is a more detailed explanation of each option:
- A. Long-term markets are markets for long-term debt instruments, such as bonds and stocks. Long-term markets are not a type of secondary market.
- B. Secondary markets are markets in which existing financial instruments are traded. This is in contrast to a primary market, in which new financial instruments are issued. Secondary markets are important because they provide liquidity to investors, allowing them to buy and sell assets easily. Physical location exchanges and telephone networks are two types of secondary markets.
- C. Money markets are markets for short-term debt instruments, such as Treasury bills and commercial paper.
- D. Capital markets are markets for long-term debt instruments, such as bonds and stocks.