Which of the following statementsis CORRECT?a.While the distinctions are becoming blurred, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties.b.The NYSE operates as an auction market, whereasNasdaq is an example of a dealer market.c.Money market mutual funds usually invest theirmoney in a well-diversified portfolio of liquid common stocks.d.Money markets are markets for long-term debtand common stocks.e.A liquid security is a security whose valueis derived from the price of some other "underlying" asset.

Auction market is a type of market where the seller and buyers simultaneously trade the offer price and the bid price for security. The offer price represents the lowest price a seller want for security while the bid price represents the highest price a buyer intends to purchase. The matching of the two prices will make transaction work.

NYSE represents avenue for this type of security trading. It provides platform for buyer and seller to simultaneously trade once the bid price matches the offer price.

On the hand, dealer market is platform whereby many seller or buyers can relay the price at they want to sell or buy a security and any intending seller or buyer can come to the market sell or buy at that price. In a dealer market, there are multiple dealers involves in a trading a security and the market maker provides transparency and liquidity to ensure a smooth running of the market. Nasdaq is a potent example of a dealer market.

So option B is correct.

Other options are contradictory.