FP 1 Unit 2 Test Review

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

• call market

• bear market

• financial market

• foreign exchange market

In which financial market do people make investments in cocoa beans and corn?

• money

• insurance

• soft commodities

• selective property

A level of performance that describes using the least amount of input to achieve the highest amount of output is known as:

• commodity

• efficiency

• liquidity

• market

Which type of financial market sells new stock or bond issues to investors?

• primary capital

• soft commodities

• secondary capital

• hard commodities

A type of market in which each transaction takes place at predetermined time intervals is referred to as a:

• call market

• bond market

• financial market

• continuous market

A type of market that allows traders to trade any time the market is open is known as a:

• call market

• bond market

• financial market

• continuous market

The term that refers to how easily an asset can be converted to cash is known as:

• commodity

• currency

• Eurobond

• liquidity

A form of money held or traded outside the country in whose currency its value is stated is known as:

• US currency

• Eurocurrency

• export currency

• import currency

This is a guarantee that a check, ATM, wire transfer or debit card transaction will clear if the account balance falls below zero

• Bank account

• Overdraft Protection

• Asset Management

• Checking account

Chris wants to open a small business, and he has a very good business plan that is likely to succeed. Where would Chris be most likely to go to apply for a loan?

• Local Bank

• National Bank

• Insurance Company

• Mortgage Company