If a firm needs to finance a new corporate headquarters building, then it would most likely seek the funds in the:
A) money market.
B) capital market.
C) futures market.
D) all of the above.

Question

Quizplus · Accepted Answer

The capital market is where long-term investments are made or traded, making it the most appropriate choice to finance investments such as a new corporate headquarters building. The money market is a short-term market for borrowing and lending funds for periods up to one year. The futures market is a market for derivative securities, which are financial instruments whose value depends on, or is derived from, other assets such as commodities or stocks. Therefore, the most appropriate market for long-term investments such as a corporate headquarters building is the capital market.

If a Firm Needs to Finance a New Corporate Headquarters