The market where financial institutions buy and sell existing loans is the:
AGovernment bond market
BMoney market fund pool
CSecondary loan market
DPrimary loan market
Answer & Solution
Correct answer: C. Secondary loan market
1. Loans are first made in the primary market.
2. Reselling them happens in the secondary loan market.
3. Riskier loans fetch lower prices.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 13, Money and Banking (CC BY 4.0)._
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