Question 17
Financial InstitutionsA stock exchange is a market that
- A.deals with the exchange of commodities
- B.deals with the purchase and sale of securities
- C.exchanges stockfish for lady fish
- D.exchanges Treasury Bills for Bills of Exchange
- E.sells foreign exchange
Show the answer and explanation
Answer: B (deals with the purchase and sale of securities)
Explanation
A stock exchange is a market for buying and selling existing securities (shares, stocks and bonds).