Certified Residential Appraiser Practice Exam

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Study for the Certified Residential Appraiser Exam. Use flashcards and multiple choice questions with hints and explanations. Ensure you're ready for your certification!

Practice this question and more.

What type of market involves long or intermediate-term investments such as stocks and bonds?

Capital Market
Money Market
Real Estate Market
Secondary Market

The correct answer is: Capital Market

The capital market is characterized by the trading of long-term securities, including stocks and bonds. This market serves as a mechanism for raising funds by allowing companies and governments to issue debt and equity securities to investors. Investors in the capital market typically commit their funds for extended periods, making it suitable for those looking to build wealth over time through long-term investments. In contrast, the money market deals with short-term borrowing and lending, typically involving instruments that mature in a year or less, like Treasury bills and commercial paper. The real estate market, while it can involve long-term investments, specifically pertains to real estate assets rather than financial securities like stocks and bonds. The secondary market refers to the resale of existing securities rather than the initial issuance of new securities. Thus, the capital market is the correct context for discussing long or intermediate-term investments specifically related to securities.