Which of the following does SEC not do?

Provides security for investors

What is the purpose of a financial intermediary?

Channels funds from savers to borrowers

What are the four types of risk?

Credit, liquidity, inflation rate, time

How do bond ratings work?

The higher the bond rating, the lower the interest rate

Wht happened to cause the Great Crash of 1929?

Stocks began to drop & everyone wanted out of their stocks

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Financial Markets

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Economics

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Questions 16

Answers

1
What type of market has a steady rise over a period of time?
Bull Market
Controlled Market
Leading Market
Bear Market
2
Which of the following does SEC not do?
Prohibits fraud
Provides security for investors
Regulates financial markets
Regulates investment companies
3
What type of bond is issued by a corporation to raise money to expand it's business?
Savings Bond
Corporate Bond
Junk Bond
Municipal Bond
4
Which is not a component of a bond?
Coupon Rate
Par Value
Yield
Maturity
5
What are intermediaries required to provide by law?
Prospectus
Returns
Pension
Portfolio
6
Two catagories can markets be classified under based on whether their assets can be resold?
Primary & Secondary
Dominant & Inferior
Direct & Indirect
Corporate & Non-corporate
7
What is the purpose of a financial intermediary?
Channels funds from borrowers to savers
Channels funds from savers to other savers
Invests in various companies to make money
Channels funds from savers to borrowers
8
What is another term for shares?
Captial
Futures
Equities
Stocks
9
What is the countries largest and most powerful stock exchange?
Nasdaq
NYSE
Dow Jones
S&P 500
10
What are the four types of risk?
Credit, time, debt, insurance
Debt, time, mortgage, savings
Credit, liquidity, inflation rate, time
Inflation rate, debit, insurance, liability
11
What is the best rating that a bond can get? (Standard & Poor's scale)
AAAA
AA
AAA
A
12
How do bond ratings work?
The lower the bond rating, the higher the interest rate
The higher the bond rating, the lower the interest rate
The higher the bond rating, the higher the interest rate
The lower the bond rating, the lower the interest rate
13
Which of the following is not a type of stock?
Growth Stock
Income Stock
Preferred Stock
Expense Stock
14
What promotes economic growth and contributes to the nations wealth?
Diversification
Mutual Funds
Banks
Investments
15
Wht happened to cause the Great Crash of 1929?
Stocks began to drop & everyone wanted out of their stocks
Stock prices raised to an all-time high
The stock market shut down
The Great Depression
16
Which of the following is not an example of a financial intermediary?
Banks, Savings, and Loan associations
Mutual Fund
Corporate Fund
Pension Fund

Financial Markets Flashcards | StudBud