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If an Individual Supplies Funds to a Business Firm by Purchasing

Question 75

Multiple Choice

If an individual supplies funds to a business firm by purchasing bonds issued by the firm, the transaction:


A) creates two types of financial assets and two types of financial liabilities
B) increases the liquidity and safety of principal for the individual
C) initially occurs in the primary market
D) limits the ability of the security to be sold in the secondary market
E) all of the above

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