Financial Markets Test

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

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

True or False: Stock values change daily.

• true

• false

Companies that sell shares of a portfolio of securities are known as

• pension plans

• mutual funds

• discount brokerage firms

• bear markets

The physical place where buyers and sellers meet to trade stocks is known as the

• brokerage desk

• stock or securities exchange

• trading floor

• equities trader