Finance Review Quiz

What is a Bear Market?

• A market where stock prices are rising and investor confidence is growing.

• A market where stock prices are falling and investor confidence is decreasing.

• A market exclusively for trading bears and bear-related commodities.

• A market where stock prices remain constant over time.

Which of the following best describes Blue Chip Stocks?

• Stocks from companies with a history of poor performance.

• Stocks that are very risky and unpredictable.

• Stocks from well-established, financially sound companies that have demonstrated their ability to perform in good and bad times.

• Stocks that are only available in the color blue.

What is a Bond?

• A type of stock that gives ownership in a company.

• A loan made by an investor to a borrower, usually corporate or governmental.

• A promise between friends to invest together.

• A certificate that guarantees a fixed number of shares of stock.

What does a Broker do?

• Prints money for the government.

• Acts as a middleman between buyers and sellers in financial markets.

• Provides legal advice to companies.

• Manages a company's finances.

What characterizes a Bull Market?

• Falling stock prices and pessimism among investors.

• Constant stock prices and neutral investor sentiment.

• Rising stock prices and optimism among investors.

• The trading of livestock and agricultural products.

What is a Commodity?

• A unique, one-of-a-kind financial instrument.

• Basic goods used in commerce that are interchangeable with other goods of the same type.

• A term for high-tech stocks.

• A type of bond issued by technology companies.

What are Dividends?

• Fees charged by brokers for their services.

• Payments made by a corporation to its shareholders, usually as a distribution of profits.

• The initial price of a stock when it is first issued.

• Loans taken by companies to fund new projects.

What is an Exchange-Traded Fund (ETF)?

The term 'Index' in finance refers to:

• A book that lists all the stocks available for purchase.

• A measure of the price performance of a collection of stocks that represents a particular market or sector.

• The interest rate on a loan.

• The alphabetical listing of commodities.

An IPO (Initial Public Offering) is:

• When a company offers its stocks to the public for the first time.

• A type of dividend paid to shareholders.

• A strategy used by investors to reduce risk.

• When a company decides to buy back its own shares from the market.