The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-When you purchase a bond in the secondary market, you are lending money directly to the borrower.

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-When you purchase a bond in the secondary market, you are lending money directly to the borrower.

Quizplus · Accepted Answer

When you purchase a bond in the secondary market, you are buying the bond from another investor and not lending money directly to the borrower. The borrower already received the funds when the bond was initially issued in the primary market.

The Figure Given Below Shows the Demand [D and D']