Which of the following is a characteristic of a share?

Gives holder part-ownership of the company

What type of financing occurs when firms decide to float their shares on the ASX?

Equity financing in primary financial market

An upturn in the sharemarket is likely to have what effect on household consumption?

High consumption due to higher household wealth

Which of the following transactions would occur in the foreign exchange market?

The purchase of British pounds with Australian dollars

Which of the following is likely to decrease the price of a company's shares?

Lower demand for the firms product

Which of the following characteristics of a Government bond is true?

The bond issuer receives regular fixed coupon payments

Which of the following is true of financial markets?

They mediate interactions between savers and borrowers

Which of the following transactions would occur in a primary financial market?

The purchase of newly-issued shares

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Financial Markets

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Sharemarket

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Questions 10

Answers

1
Which of the following is a characteristic of a share?
Gives holder part-ownership of the company
Can always be sold for a higher price
Share owner does not receive any profits from the company
Share owner receives regular interest repayments
2
What type of financing occurs when firms decide to float their shares on the ASX?
Equity financing in the derivatives market
Equity financing in secondary financial market
Debt financing in secondary financial market
Equity financing in primary financial market
3
An upturn in the sharemarket is likely to have what effect on household consumption?
Lower consumption due to lower household wealth
Higher consumption due to lower household wealth
Lower consumption due to higher household wealth
High consumption due to higher household wealth
4
Which of the following best describes the Australian Stock Exchange?
Secondary debt market
Secondary equity market
Primary debt market
Primary equity market
5
Which of the following transactions would occur in the foreign exchange market?
The purchase of French wine with euros
The purchase of British pounds with Australian dollars
The purchase of US dollars in exchange for gold
The purchase of euros with French wine
6
Which of the following is likely to decrease the price of a company's shares?
Lower interest rates on the company's loans
Higher prices received for the firm's product
Lower rates of unemployment in the economy
Lower demand for the firms product
7
Which of the following characteristics of a Government bond is true?
The bondholder must hold the bond until maturity date
Bonds can be traded in secondary financial markets
Corporate bonds are traded on the share market
The bond issuer receives regular fixed coupon payments
8
Which of the following is true of financial markets?
They are the main source of government income
They are government owned
They mediate interactions between savers and borrowers
They mediate interactions between banks
9
Which of the following organisations can issue shares?
Partnerships
Sole Traders
Incorporated companies
Governments
10
Which of the following transactions would occur in a primary financial market?
The purchase of newly-issued shares
Purchase of shares from another trader in the stockmarket
The purchase of fruit and vegetables from a farm
The payment of money into a superannuation account

Financial Markets Flashcards | StudBud