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Management · Q290

International Finance and Treasury

Graduate and Post Graduate · Management · question 290

Q290

Financial institutions having loans swapped for bonds can sell all bonds in

A.
under-developed markets
B.
developed markets
C.
primary markets
D.
secondary markets
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Financial institutions having loans swapped for bonds can sell all bonds in secondary markets. A secondary market is a marketplace where already issued securities both shares and debt can be bought and sold by the investors. So, it is a market where investors buy securities from other investors, and not from the issuing company.