Econ Test Review - Unit 3 Lesson 8

Which of the following is a prolonged period of falling stock prices, accompanied by widespread investor pessimism?

• Bull market

• Bear market

• Market index

• Junk bond

What is a bond issued by a corporation to raise money for its operations called?

• Municipal bond

• Corporate bond

• Junk bond

• Treasury bond

Which of the following refers to the ease with which assets can be converted into cash?

• Liquidity

• Credit

• Interest

• Principal

What is the term for a card authorizing the user to access his or her own funds on deposit in a bank account?

• Credit card

• Debit card

• Banknote

• Check

What is the term for a legal document that provides information about a security offered to investors?

• Prospectus

• Dividend

• Brokerage

• Budget

Which of the following is a method of calculating how long it will take to double the value of an investment?

• Rate of return

• Rule of 72

• Compound interest

• Fractional reserve banking

What is the term for a company that buys and sells stocks and bonds for investors?

• Financial institution

• Brokerage

• Stockbroker

• Financial intermediary

Which of the following is a signed form instructing a bank to pay a specified amount to the person or business named on it?

• Check

• Banknote

• Debit card

• Credit card

What is the term for a collection of securities chosen and managed by a group of professional fund managers?

• Mutual fund

• Market index

• Securities

• Diversification

This term means a business whose main purpose is to receive deposits and make loans.

• Bank
• Insurance Company
• Investment Firm
• Credit Union