Chapter 11 Test, Form A - Financial Markets

Front

What kind of fund collects and invests income for later payments to eligible recipients?

Back

pension fund

Front

Which type of financial organization is a nonprofit service cooperative?

Back

credit union

Front

What is the name of the fee paid for an insurance policy?

Back

premium

Front

Which financial organization specializes in buying installment contracts from merchants who sell on credit?

Back

a finance company

Front

What is the main advantage of a mutual fund for an investor?

Back

It offers diversity in investment.

Front

What is an advantage of a 401(k) plan?

Back

Most employers match a portion of your contributions.

Front

A marketplace where trading of securities such as equities, bonds, currencies, and derivatives occurs is referred to as a:

Back

financial market.

Tags

NCCTE.2020.BF21.02.01

Front

Which of the following is a primary financial market?

• Stock exchange
• Bond market
• Foreign exchange market
• Derivatives market

Back

Stock exchange

Front

What is the primary role of financial institutions?

Back

To facilitate the flow of funds in the economy