Marketplaces Test

What is the global economy?

• The total amount of money in each country’s economy.

  .

• All the transactions that occur in the markets in your country’s economy.

• All the transactions that occur in connected markets across the economies of different countries.

• The total amount of investment opportunities within each country

Which of the following statements about the relationship between the financial market and the economy is TRUE?

• The financial market helps the economy grow.

• The financial market only benefits companies in the economy.

• The goods and services market influences the economy more than the financial market.

• There is no relation between the financial market and the economy.

Which of the following statements about the impact of the financial market is TRUE?

• The government uses money from the financial market to fund government projects.

• Companies can get money from the financial market to grow and develop their businesses.

• Individuals can invest in the financial market to help them achieve their financial goals.

• All of these answers.

The capital market is the market for…

• Short-term money market investments

• Futures and forwards

• Stocks and bonds

• Currencies

Which of the following is NOT an example of a transaction?

• Getting a paycheck from your job for the hours you worked.

• Paying a restaurant bill at the end of your dinner.

• Giving your friend a gift for their birthday.

• Selling a pair of old shoes online for $20.

Which of the following is NOT an example of a transaction?

• An employer giving a paycheck to one of their employees for the hours they worked.

• An investor buying stock on the stock market.

• An individual paying for a new jacket.

• An individual volunteering their time at a local charity.

Which of the following is NOT an example of a transaction?

• Finding a $10 bill on the ground.

• Getting a paycheck from your job for the hours you worked.

• Selling some of your stocks on the stock market.

• Buying a new app to play on your phone.

The financial market first started over 500 years ago with merchants trading debts.

• True

• False

What is the place where investments are bought and sold called?

• The capital market

• The stock exchange

• The investment bank

• The exchange floor

Most stock exchanges today use electronic trading.

• True

• False