Stock Jobs Stock Institutions and Financial Markets 5

Question 1

What is a dividend?

Accepted Answer

A distribution of a company's earnings to shareholders

Answer

A dividend is a portion of a company's profits paid out to its shareholders.

Question 2

What is a bull market?

Accepted Answer

A period of rising stock prices and optimism

Answer

A bull market is characterized by sustained rising prices and investor optimism.

Question 3

What is an exchange-traded fund (ETF)?

Accepted Answer

A basket of securities that trades on an exchange like a stock

Answer

An ETF holds a basket of assets and trades on exchanges throughout the day like an individual stock.

Question 4

What does the Federal Open Market Committee (FOMC) do?

Accepted Answer

Sets U.S. monetary policy and the federal funds rate

Answer

The FOMC is the Federal Reserve body that sets monetary policy, including the federal funds rate target.

Question 5

What is a blue-chip stock?

Accepted Answer

Stock of a large, established, financially sound company

Answer

Blue-chip stocks are shares of large, well-established, reliably profitable companies.

Stock Jobs Practice Test