Investing and Financial Markets example #25654

12 March 2023
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18 test answers

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question
Which term refers to the possibility of an investor losing some or all of an investment?
answer
risk
question
How do bonds generate income for investors?
answer
Bonds appreciate in value. Bonds pay dividends. _Bonds pay a specified amount at maturity.
question
Capital appreciation refers to
answer
the increased value of a stock.
question
Which best describes an investor's primary goal?
answer
to earn a profit
question
Which factors can affect a stock's price? Check all that apply.
answer
-market performance -the company's financial health -the economy
question
Are the buying and selling of stocks centralized activities? Why or why not?
answer
No, there are many stock markets around the world, and they are independent of one another.
question
Which best describes how an investor makes money off debt?
answer
by earning interest
question
Which can be traded in a commodities market?
answer
oil
question
Which is true about investments and risk?
answer
Every investment carries some degree of risk.
question
Which best describes how an investor makes money from an equity investment?
answer
by selling the asset for a profit
question
Which best describes the role that government and business play in investments?
answer
They both receive capital to use for growth.
question
Since stocks can be traded online, which purpose is best served by markets?
answer
Markets are where the trades actually occur. Markets offer the assets to be traded. _Markets ensure that the transactions are secure.
question
If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?
answer
No, the payment of dividends indicates that a company has earned profits.
question
Once stocks are on the market, which best explains how their prices are set?
answer
Prices fluctuate on the basis of demand.
question
Which best describes what a market index does?
answer
An index measures market performance.
question
Which are common types of bonds that are currently issued? Check all that apply. (corporate bonds, equity bonds, municipal bonds, Treasury bills, Treasury notes, war bonds)
answer
✔️✔️✔️◻️◻️◻️ -corporate bonds -municipal bonds -Treasury bills -Treasury notes
question
Which are the most likely uses of capital invested in a business? Check all that apply. (paying taxes' hiring workers, repaying investors, producing goods, distributing goods, buying materials)
answer
✔️◻️✔️◻️◻️✔️ ◻️✔️✔️◻️◻️✔️
question
Which best describes what generally occurs in financial markets?
answer
Debt and loans are traded. Assets are traded.