n NISM Certifications
VII NISM Series VII
Medium

The ______ market provides liquidity to instruments traded in the securities markets.

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Primary

  2. Secondary

    Correct answer

  3. C

    Currency

  4. D

    Auction

Why this is the answer

The secondary market provides liquidity by enabling trading of securities issued in the primary market.

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