DECA Finance Practice 3

Front

As financial intermediaries, what is all financial institutions' primary responsibility? A. Transferring money from those who have it to those who need it, B. Investing clients' money in mid-cap growth companies, C. Calculating the opportunity costs of clients' potential investments, D. Conducting fundamental and technical analyses to evaluate securities

Back

Transferring money from those who have it to those who need it

Front

Which type of financial institution facilitates the buying and selling of securities between investors?

Back

Brokerage firms

Front

Mortgages and government bonds are examples of

Back

debt instruments.

Front

Which of the following is a characteristic of a call market: A. Buyers and sellers determine prices. B. Buy orders are made at specific times. C. Trades occur continuously. D. Prices change from moment to moment.

Back

Buy orders are made at specific times.

Front

Which of the following is an ethical principle that is applicable to finance: A. Incrementalism, B. Competence, C. Self-interest, D. Framing

Back

Competence

Front

The Money for You Bank recently merged with the Keeping You Safe Insurance Company. The merger is an example of __________ in the finance industry.

Back

convergence

Front

When a business reviews a customer's credit application, it is evaluating risks associated with the customer's ability to pay.

Back

customer's ability to pay.

Front

According to most analysts, the three economic indicators that stock market investors and traders should pay the closest attention to are: gross domestic product, unemployment, and inflation.

Back

gross domestic product, unemployment, and inflation.

Front

When a country is experiencing a recession, which of the following typically occurs first: A. Stock prices increase, B. A stock market crash, C. A stock market recovery, D. Stock prices decrease

Back

Stock prices decrease

Front

Which of the following statements about hedge funds is true: A. Hedge funds involve private investment partnerships. B. Government agencies usually manage hedge funds. C. Investment options for hedge funds are limited in scope. D. Hedge funds are designed to generate conservative financial returns.

Back

Hedge funds involve private investment partnerships.