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A financial 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. A bank makes a mortgage loan to a home buyer.

b. A bank sells a mortgage loan to Fannie Mae.

c. A startup company obtains financing by selling

shares of stock to investors.

d. One of the investors in a startup company

resells her holding of the company’s stock to

someone else.

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