1. ______ have physical locations.
a. money markets
b. electronic markets
c. over-the-counter markets
d. organized security exchanges *
3. which of the following is not a form of debt?
a. common stock
b. short term notes *
c. accounts payable
d. accrued expenses
any help would be appreciated, i marked what i think the answers are.
For the first question, the correct answer is "d. organized security exchanges." To arrive at this answer, you can analyze the given options:
a. Money markets: Money markets refer to financial markets where short-term borrowing and lending of funds occur. They are not physical locations, so this option is incorrect.
b. Electronic markets: Electronic markets involve buying and selling securities through electronic systems, such as online platforms. Again, they are not physical locations, so this option is also incorrect.
c. Over-the-counter markets: Over-the-counter (OTC) markets refer to the decentralized trading of financial instruments directly between parties, rather than through a centralized exchange. While they do not have a physical location per se, they can occur in various physical locations or online. Therefore, this option is not completely correct.
d. Organized security exchanges: Organized security exchanges, also known as stock exchanges, are physical locations where buyers and sellers come together to trade financial instruments (such as stocks, bonds, and derivatives) in a regulated environment. Therefore, this option is correct as it does refer to physical locations.
Hence, the correct answer for the first question is "d. organized security exchanges."
For the second question, the correct answer is "a. common stock." Here's why:
a. Common stock: Common stock represents ownership in a company and represents equity ownership, not debt. Therefore, this option is correct.
b. Short-term notes: Short-term notes, also known as short-term debt or promissory notes, are a form of debt. They represent borrowing by a company or individual for a specified period, typically less than one year. Therefore, this option is incorrect.
c. Accounts payable: Accounts payable refers to the amount owed by a company for goods or services received but not yet paid for. It represents a form of debt that a company owes to its suppliers or creditors. Therefore, this option is incorrect.
d. Accrued expenses: Accrued expenses represent expenses that a company has incurred but has not yet paid for. They are liabilities and represent a form of debt. Therefore, this option is incorrect.
Hence, the correct answer for the second question is "b. short-term notes."