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It Is Important to Be Able to Resell Financial Claims

Question 1

Multiple Choice

It is important to be able to resell financial claims in a secondary market because it allows:


A) DSUs to finance a project with successive issues of financial claims.
B) DSUs to implement projects with horizon shorter than the SSUs' investment horizon.
C) SSUs to purchase financial claims with maturities that are longer than their investment horizon.
D) SSUs to purchase financial claims with maturities that are shorter than their investment horizon.

Correct Answer:

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