Exam 2: Financial Markets and Institutions

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Financial markets are used for trading:

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What is meant by over-the-counter trading?

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Financial intermediaries are the same as manufacturing corporations, because they raise their funds in the same manner.

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Markets and intermediaries do not provide liquidity, that is, the ability to turn an investment back into cash when needed.

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Cash retained and reinvested in the firm's operations is cash saved and invested on behalf of the firm's shareholders.

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