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Which of the following statement is correct? O Without the federal reserve bank's authority to print money, the states cannot legally pay its obligations, including the interest and principal on municipal securities. The major stock markets are generally inefficient because investors can trade thousands of dollars worth of shares in minutes simply by making a phone call or hitting a few computer keys and paying a relatively small commission. O Market efficiency refers to the ease, speed, and cost of trading securities. O All the answers are incorrect. O Treasury bills, negotiable certificates of deposit, commercial paper, and other short-term debt instruments are traded in the capital market. Which of the following statement is correct? O Maturity date is the date on which the issuer is obligated to pay the stockholder the stock's dividends. O Money market securities include Treasury bills, negotiable certificates of deposit, commercial paper, Eurodollars, and banker's acceptances. The over-the-counter market (OTC) has a fixed location where the dealers on the floor is ready to buy and sell the securities. O All the answers are incorrect. O Capital market securities include Treasury bills, negotiable certificates of deposit, commercial paper, Eurodollars, and banker's acceptances. Which of the following statement is correct? Large-denomination T-bills (of $100,000 to $1 million or more), with maturities of two weeks to a year, are negotiable because they can be traded in the primary market after they are initially issued by a corporation. O Securities does not have value because the bearer has to pay the amount specified, and therefore the bearer could not sell the security to someone else for cash. Money market securities are very liquid; that is, they mature quickly and can be sold for cash quickly and easily. O All the answers are incorrect. Relatively safe bonds are called junk bonds

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