Question

Help in ECON!!!!

Answer 1

1. Which of the following is the market for selling financial assets that can only be redeemed by the original holder?

money market
secondary market
primary market
capital market

2. What is the automated electronic securities market that links sales in the United States, Asia, and Europe called?

the OTC market
the S & P 500
the Dow
the NASDAQ


3. What is a firm that specializes in buying and selling stocks for individual investors called?

a capital gain
a stock exchange
a stock split
a brokerage firm

4. What are futures?

contracts to buy or sell at a specific date in the future at a price specified today
claims of ownership in a corporation by the original investors
portions of stock
bond yields


5. One month ago, Jan invested $1,500 in a one-year certificate of deposit (CD), which offered 4.25% annual interest. Today, she found a credit union that offers one-year CDs at 4.75% annual interest. What is this an example of?

inflation rate risk
time risk
liquidity risk
credit risk

6. What is an investment report that is given to potential investors called?

an annual report
a prospectus
a portfolio
a report card

7. Which of the following is not one of the three advantages of dealing with a financial intermediary?

A financial intermediary creates financial assets.
A financial intermediary provides liquidity.
A financial intermediary shares risks.
A financial intermediary provides information.


8. Which of the following is the market in which money is lent for periods of less than a year?

capital market
secondary market
money market
primary market

9. In 1942, school children brought their dimes and quarters to school each week. Which of the following items would the children buy that would eventually add up to the price of a war bond?

patriot pins
yellow ribbons
war stickers
defense stamps


10. Your friend Jorge has just inherited $1,000 and would like to invest the money in the stock market. What do you suggest that he do?

contact NASDAQ, which will assign a stockbroker to him
contact a brokerage firm, who will put him in touch with a stockbroker
reserve a seat at the New York Stock Exchange
call the New York Stock Exchange, which can direct him to the OTC market


11. Which of the following is not one of the ways borrowers engage in the financial system?

building roads, factories, and homes
creating new markets
securing financial assets
developing new products

12. What is the index that shows how 30 specific industrial stocks have traded called?

the stock exchange
the OTCC market
the S & P 500
the Dow


13. What are Standard & Poor’s and Moody’s?

financial intermediaries
a part of the Securities and Exchange Commission
the largest issuers of junk bonds
firms that rate bonds and publish the ratings


14. What is the money an investor receives above and beyond the money initially invested called?

investment
liquidity
return
savings

15. Which of the following are financial assets traded in money markets?

municipal bonds
Treasure notes
Treasury bills
corporate bonds