Investment Test 2

Question 1

Which of the following enables the issue of shares by acting as a middleman in the transfer of funds between the company in need of financing and the general public?

Accepted Answer

Underwriter

Answer

Securities investor

Answer

Stock issuer

Answer

Bond issuer

Question 2

An ______ is a decentralized market in which members trade directly with one another rather than through a centralized exchange. It is made up of securities that are not traded on public markets.

Accepted Answer

Over-the-counter (OTC) market

Answer

Derivatives market

Answer

Stock exchange

Answer

Primary market

Question 3

For the first time, new shares are issued and offered to the investing public in the ______ .

Accepted Answer

Primary market

Answer

Capital market

Answer

Debt market

Answer

Secondary market

Question 4

What does the acronym APR stand for?

Accepted Answer

Annual Percentage Rate

Answer

Accreditation in Public Relations

Answer

Academic Percentage Rate

Answer

Annual Progress Rate

Question 5

The is made up of exchanges and over-the-counter markets where publicly traded businesses' shares are issued and sold.

Accepted Answer

Stock market

Answer

Initial public offering

Answer

Stock exchange

Answer

Debt market

Question 6

What is the definition of a bull market?

Accepted Answer

A market in which assets are rising or anticipated to be rising

Answer

A market that is frozen, preventing the purchase or sale of stocks.

Answer

A market in which losses are expected and securities prices are declining.

Answer

A market portfolio with a lot of variety.

Question 7

What is the definition of GDP?

Accepted Answer

Gross Domestic Product

Answer

Gross Domestic Profit

Answer

Gross Domestic Proceed

Answer

Gross Domestic Progress

Question 8

What is the definition of liquidity?

Accepted Answer

The extent to which an asset or security can be acquired or sold without impacting its price in the market.

Answer

A nearly incompressible fluid that conforms to the shape of its container while maintaining a (nearly) constant volume regardless of pressure.

Answer

Falsifying information on a tax return knowingly and willingly.

Answer

A debt investment in which an investor lends money to a company that borrows money for a set period of time at a set interest rate.

Question 9

What is the significance of your credit score?

Accepted Answer

It has an impact on how much money banks and credit card firms are ready to lend you.

Answer

You won't have to pay taxes if you get a score of 500.

Answer

It allows you to keep track of how much money you spend on a monthly basis.

Answer

It establishes how much money you can gain from a specific investment.