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30 questions
What is the global economy?
The total amount of money in each country’s economy.
All the transactions that occur in the markets in your country’s economy.
All the transactions that occur in connected markets across the economies of different countries.
The total amount of investment opportunities within each country.
All of the transactions that occur in connected markets across the economies of different countries create.
The global economy
Your country’s economy
A goods and services market
The stock market
How does a global economy impact you?
You can access goods, services, and investments from different markets around the world.
The transactions you make in your own country are often connected to different markets around the world.
You can only access goods, services, and investments inside of your own country’s markets.
How does the financial market impact the economy?
The financial market helps the economy grow.
The financial market determines how the economy is doing.
The financial market gives individuals, companies, and the government access to money they need.
Which of the following statements about the importance of the financial market is TRUE?
The financial market is one of the smallest markets in the global economy.
The financial market is one of the most important markets for economic growth.
The financial market is only important to companies and wealthy people.
The financial market doesn’t affect the economy.
Which of the following statements about the relationship between the financial market and the economy is TRUE?
The financial market helps the economy grow.
The financial market only benefits companies in the economy.
The goods and services market influences the economy more than the financial market.
There is no relation between the financial market and the economy.
Which of the following statements about the impact of the financial market is TRUE?
The government uses money from the financial market to fund government projects.
Companies can get money from the financial market to grow and develop their businesses.
Individuals can invest in the financial market to help them achieve their financial goals.
All of the above
Why might individuals want to participate in the financial market?
The financial market is a guaranteed way to make money.
Individuals can invest their money in the financial market to help them achieve their financial goals.
Both A and B are true.
Neither A nor B are true.
Imagine you own a startup company. How might you benefit from participating in the financial market?
You could use the financial markets to get investors in your company.
You can use the money from the financial market to develop your company’s products and services.
Both A and B are true.
Neither A nor B are true.
Which of the following is NOT an example of a financial market?
The capital market
The money market
The derivatives market
The export market
Which financial market is the stock market a part of?
The capital market
The money market
The derivatives market
The foreign exchange market
The capital market is the market for…
Short-term money market investments
Futures and forwards
Stocks and bonds
Currencies
Which of the following is NOT an example of a transaction?
Getting a paycheck from your job for the hours you worked.
Paying a restaurant bill at the end of your dinner.
Giving your friend a gift for their birthday.
Selling a pair of old shoes online for $20.
Which of the following is NOT an example of a transaction?
An employer giving a paycheck to one of their employees for the hours they worked.
An investor buying stock on the stock market.
An individual paying for a new jacket.
An individual volunteering their time at a local charity.
Which of the following is NOT an example of a transaction?
Finding a $10 bill on the ground.
Getting a paycheck from your job for the hours you worked.
Selling some of your stocks on the stock market.
Buying a new app to play on your phone.
The financial market first started over 500 years ago with merchants trading debts.
True
False
The financial markets are a relatively new technological development created in the last 50 years.
True
False
The financial markets were created more than 500 years ago.
True
False
What is a stock exchange?
A place where investors can buy and sell different investments.
A type of bank that buys and sells different types of investments.
An organization that owns shares of stock.
None of the above
What is the place where investments are bought and sold called?
The capital market
The stock exchange
The investment bank
The exchange floor
Which of the following statements is TRUE?
Stock exchanges are always physical places for trading.
A stock exchange is a place where investors can buy and sell different investments.
All investment trading is done exclusively on the New York Stock Exchange.
All of the above
Most stock exchanges today use electronic trading.
True
False
Most stock exchanges today use floor trading with human brokers.
True
False
The stock exchange scene has not changed much over time; floor trading and human brokers are still used at most stock exchanges.
True
False
What does a broker do?
Provides the most up-to-date prices on investments in the market
Makes investment trades for their clients
Reports news on the financial markets
Helps companies raise money in the financial market
Which person is responsible for buying and selling investments for their clients?
A designated market maker
A reporter
A broker
An investment banker
Why might a broker look at world news and financial data?
To help them make recommendations to their clients on what investments to buy and sell.
To help them make investment decisions on what to buy for their own portfolio.
To provide up-to-date prices in the market.
To report what’s happening in the financial market.
When there are events that promote economic growth in the news, what usually happens to stock prices?
Stock prices in all industries go up
Stock prices in all industries go down
Stock prices go up in some industries and down in other industries
Not enough information
When a natural disaster happens, what usually happens to stock prices?
Stock prices in all industries go up
Stock prices in all industries go down
Stock prices go up in some industries and down in other industries
Not enough information
When there are events that are unfavorable to economic growth (such as a global recession) in the news, what usually happens to stock prices?
Stock prices in all industries go up
Stock prices in all industries go down
Stock prices go up in some industries and down in other industries
Not enough information
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