Investing And Financial Markets

15 October 2022
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9 test answers

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question
Which best describes what generally occurs in financial markets?
answer
Shares are traded.
question
Since stocks can be traded online, which purpose is best served by markets?
answer
Markets regulate transactions.
question
How do bonds generate income for investors?
answer
Bonds pay a specified amount at maturity.
question
Which best describes how an investor makes money from an equity investment?
answer
by selling the asset for a profit
question
Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?
answer
They both receive capital to use for growth.
question
Which best describes the role that government and business play in investments?
answer
They both invest money to earn a profit.
question
Which best describes how an investor makes money off debt?
answer
by selling the debt
question
Which term refers to the possibility of an investor losing some or all of an investment?
answer
risk
question
Which is true about investments and risk?
answer
Every investment carries some degree of risk.