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15 questions
_______ a network of savers, investors, financial assets, and financial institutions that work together to transfer savings to investment uses
secondary market
primary market
financial system
capital market
The main characteristics of money market transactions which enables it to have active secondary market are:
Securities that trade in one year or less
Securities that are of large denomination
Securities that are very liquid
All above
Institutions such as banks that collect funds from savers that can be loaned to borrowers are known as
financial intermediaries
financial assets
dividends
Credit Unions
Funds that collect and invest income until payments are made to eligible (retired) people are known as
mutual funds
pension funds
bear markets
bull markets
A person who buys or sells equities for his or her clients is a
Insurance agent
financial advisor
stockbroker
accountant
_______ is an agreement to buy or sell at a specific date in the future at a predetermined price
equities
futures contract
bond
savings
_______ a market in which all financial assets can be sold to someone other than the original issuer
primary market
secondary market
financial system
capital market
_______ a market in which financial capital is loaned and/or borrowed for at least one year
primary market
secondary market
financial system
capital market
What is the main advantage of a mutual fund for an investor?
Its price doesn't change much.
It offers diversity in investment.
It has a set maturity date.
It can be sold at a profit.
Banks provide which of the following EXCEPT
debit cards
loans
check writing services
government subsidies
It accepts deposits from individuals and organizations that have excess funds and provide loans to those who are in need. This financial institution is called _______.
investment banks
commercial banks
credit unions
insurance companies
One of the financial institutions that operates by collecting premiums from clients is called ____________ .
brokerage
credit union
investment banks
insurance companies
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