BF 2.01 Types of Financial Markets

John is a new investor and he is learning about different types of markets. He came across a term which refers to a marketplace where trading of securities including equities, bonds, currencies and derivatives occurs. What is this market called?

• Financial Market

• Call Market

• Foreign Exchange Market

• Bear Market

John wants to sell one of his assets quickly for cash. Which term refers to this ability?

• Liquidity

• Commodity

• Currency

• Eurobond

In a manufacturing company, a manager is trying to achieve a level of performance where the least amount of raw materials and labor are used to produce the maximum number of products. What is this called?

• Efficiency

• Commodity

• Liquidity

• Market

Imagine you are studying the stock market and you come across a market where each transaction is scheduled at specific time intervals. What is this type of market called?

• Call Market

• Financial Market

• Bond Market

• Continuous Market

Imagine you are a stock trader. You are trading in a market where you can place your orders at any time when the market is open. Buyers and sellers continuously place their orders and these orders are matched on a continuous basis. What type of market are you trading in?

• Continuous Market

• Financial Market

• Bond Market

• Call Market

Currency deposited by national governments or corporations, outside of its home market. For example, it can be currency held in banks located outside of the country which issues the currency

• Eurocurrency

• US Currency

• Import Currency

• Eurobond

John is a trader and he deals with a basic good that is interchangeable with other commodities of the same type in his business. What is this type of good called?

• Commodity

• Eurobond

• Liquid Asset

• Dividend

Imagine you are an investor looking for a market where you can trade debt instruments such as government and corporate bonds, and also deal with packaged loan products that are sold to investors. Which market would you be involved in?

• Debt Market

• Equity Market

• Auction Market

• Over-the-counter Market

Imagine you are an entrepreneur who wants to raise funds for your startup. You decide to give investors a chance to profit by allowing your company's stock shares to be traded. What type of market would this be?

• Equity Market

• Debt Market

• Auction Market

• Over-the-counter Market

Imagine you are an international trader. You are dealing with global markets where convertible currencies are traded and their conversion rates are determined. What is this market called?

• Foreign Exchange Market

• Equity Market

• Auction Market

• Debt Market