Chapter 11 Financial Markets Review

_______ is an agreement to buy or sell at a specific date in the future at a predetermined price

• equities

• futures contract

• bond

• savings

_______ stocks that represent ownership shares in corporations

• equities

• capital market

• secondary market

• futures contract

_______ the dollars that become available for investors to use when others refrain from consuming

• risk

• equities

• bond

• savings

_______ formal contract to repay borrowed money and interest on the borrowed money at regular future intervals

• equities

• savings

• bond

• futures contract

_______ a market in which all financial assets can be sold to someone other than the original issuer

• primary market

• secondary market

• financial system

• capital market

_______ a market in which financial capital is loaned and/or borrowed for at least one year

• primary market

• secondary market

• financial system

• capital market

_______ a situation in which the outcome is not certain, but the probabilities can be estimated

• equities

• portfolio diversification

• risk

• bond

_______ a strategy of holding different kinds of investments to minimize risk

• portfolio diversification

• bond

• futures contract

• risk

_______ a market in which only the original issuer can sell or repurchase a financial asset

• financial system

• primary market

• capital market

• secondary market

_______ a network of savers, investors, financial assets, and financial institutions that work together to transfer savings to investment uses

• secondary market

• primary market

• financial system

• capital market