What was the outcome of the 1929 Stock market Crash?

Ordinary people were afraid to invest in the stock market

Savings Bonds differ from most other bonds in that?

Buyer does not receive periodic interest payments

Why is a C.D. considered suh a safe investment?

guaranteed by the FDIC up to $250,000

A stock split is most likely to occur when?

Price of their stock becomes too high

What are the Dow & S&P 500 Indexes?

Index showing performance of limited stocks

What is a prospectus?

Inventment report for potential investors

A day trader tries to make a profit by?

Taking advantage of minute by minute changes in stock prices

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Econ: Chapter 11- Financial Markets

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Chapter 11 Economics

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Questions 17

Answers

1
What was the outcome of the 1929 Stock market Crash?
Ordinary people were afraid to invest in the stock market
Millions of people were out of work
Finacial ruin affected millions of people
Money was hard to borrow
2
Savings Bonds differ from most other bonds in that?
They are held for a shorter period of time
Buyer does not receive periodic interest payments
Usually provide higher rate of return
They are issued in fairly large denominations
3
Why is a C.D. considered suh a safe investment?
guaranteed by the FDIC up to $250,000
Issued by a savings bank
Offers a high degree of liquidity
Pays a relatively high rate of interest
4
Since Bonds are considered a safe investment, they usually?
take a long time to mature
have low interest rates
mature quickly
have high rates of interest
5
You have $100 to invest, and won't need the money for a while. The best ivnvestment is?
Junk Bond
Municipal Bond
CD
Savings account
6
Why might you choose an investment with high risk instead of one with low risk?
For Greater Liquidity
for a lower return
For a higher return
to avoid losing money
7
A bond has a coupon rate of 5%/year, and par value of $2,000. How much interest will get ea/yr
$100
$200
$2,500
$500
8
Because you want to reduce the risk of losing all your money if an investment fails? 
You invest in a finance company
You invest in the stock market
You invest in credit unions
You invest in a Mutual Fund
9
A stock split is most likely to occur when?
Price of their stock becomes too high
A company is losing money
The stock market as a whole is doing poorly
stockholders Demand higher dividends
10
Which of these is the most risky investment?
Savings Bonds
Municipal Bonds
Treasury Bonds
Corporate Bonds
11
What happens to a company's stock price whenthe company makes a profit?
the stock price goes in the same direction as the market
the stock stays the same
The stock price goes down
The stock price goes up
12
What are the Dow & S&P 500 Indexes?
Cumulative records of all stocks sold on the NYSE
Index showing performance of limited stocks
Average of stocks and bonds traded often
Indexes that track the sales of all stocks and bonds in U.S.
13
What is a prospectus?
Inventment report for potential investors
Pool of money from various investors
report monitoring an individuals investment
Collection of financial assets
14
Which describes a Bear market?
Some stocks are going up and some are going down
Stocks are staying the same
Most stock prices are rising
Most stock prices are falling
15
A day trader tries to make a profit by?
Taking advantage of minute by minute changes in stock prices
reducing risky investments
Investing in only blue chip stocks
Speculating with borrowed money
16
If your worried about a company going out of business, what kind of stock should you buy?
Common Stock
Growth stock
Preferred Stock
Income stock
17
What kind of assets are traded using futures contracts?
Stocks
Bonds
Real Estate
Commodities

Econ: Chapter 11- Financial Markets Flashcards | StudBud