Stocks And Bonds Terms

What is a Bear Market?

• A market characterized by rising prices

• A market characterized by falling prices

• A market with stable prices

• A market with high trading volume

What is a Bond?

• A type of stock

• A loan made to a corporation or government

• A financial derivative

• A savings account

What is a Brokerage Account?

• An account for holding physical assets

• An account for trading stocks and bonds

• A savings account

• A checking account

What is Capital Gain?

• Profit from the sale of an asset

• Loss from the sale of an asset

• Interest earned on a savings account

• Dividend received from stocks

What is Diversification?

• Investing in a single asset

• Spreading investments across various assets

• Selling all investments

• Investing only in bonds

What is an Index Fund?

• A fund that tracks a specific index

• A fund that invests in real estate

• A fund that invests in commodities

• A fund that invests in a single stock

What is Inflation?

• A decrease in the price of goods and services

• An increase in the price of goods and services

• A stable price level

• A decrease in the money supply

What is Investing?

• Spending money on luxury items

• Allocating resources with the expectation of generating profit

• Saving money in a bank account

• Donating money to charity

What is Market Capitalization?

• The total value of a company's outstanding shares

• The total revenue of a company

• The total profit of a company

• The total number of employees in a company

What is a Municipal Bond?

• A bond issued by a corporation

• A bond issued by a local government

• A bond issued by a foreign government

• A bond issued by a bank