Financial Markets Review

Stocks or documents that represent a claim on the income and property of the borrower are known as

• financial intermediaries

• financial assets

• mutual funds

• 401(k) Plans

Institutions such as banks that collect funds from savers that can be loaned to borrowers are known as

• financial intermediaries

• financial assets

• dividends

• Credit Unions

The network of savers, investors, financial institutions, and financial assets is known as the

• stockbroker

• equities market

• Credit Union

• financial system

A nonprofit service that accepts deposits, makes loans, and provides other financial services is known as a

• Bank

• Credit Union

• Stockbroker

• Life Insurance Company

Funds that collect and invest income until payments are made to eligible (retired) people are known as

• mutual funds

• pension funds

• bear markets

• bull markets

The technique of spreading funds over a large number of investments to reduce the portfolio's overall risk is known as

• diversification

• mutual funds

• bear markets

• pension plans

True or False: Riskier investments can have higher profits, but also greater losses.

• true

• false

A person who buys or sells equities for his or her clients is a

• Insurance agent

• financial advisor

• stockbroker

• accountant

Which of the following is NOT one of the benefits of investing in an online brokerage firm?

• cheaper/less fees

• easier to navigate/understand

• advice from stockbrokers

True or False: Stock values change daily.

• true

• false