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Primary or secondary market

For each of the following transactions, identify

whether it occurs in a financial market or through

a financial intermediary. If the transaction occurs

in a financial market, state whether it occurs in a

primary or secondary market:

a. The federal government sells Treasury bills at

a weekly auction, where they are purchased by

a pension fund.

b. A pension fund resells some of its holdings of

Treasury bills to a bank.

c. An investor purchases 1,000 shares of Microsoft

stock on the NASDAQ stock market.

d. Microsoft issues new stock, which it sells on

the NASDAQ.

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