Exploring Financial Markets

Exploring Financial Markets

University

20 Qs

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Exploring Financial Markets

Exploring Financial Markets

Assessment

Quiz

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University

Practice Problem

Easy

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Ankita Samanta

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20 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a stock?

A stock is a form of currency.

A stock is a share in the ownership of a company.

A stock is a type of bond.

A stock is a government-issued certificate.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the term 'bull market' refer to?

A market condition with falling prices.

A financial market condition with rising prices.

A market dominated by government regulations.

A type of investment strategy.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary function of stock exchanges?

To regulate the prices of commodities

To provide loans to businesses

To issue new currencies

The primary function of stock exchanges is to facilitate the buying and selling of securities.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a dividend?

A dividend is a distribution of a portion of a company's earnings to its shareholders.

A dividend is a tax imposed on company profits.

A dividend is a loan taken by the company from shareholders.

A dividend is the total value of a company's assets.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the difference between common and preferred stock?

Common stock has fixed dividends and no voting rights.

Common stock is less risky than preferred stock.

Common stock has voting rights and variable dividends; preferred stock has no voting rights and fixed dividends.

Preferred stock has voting rights and variable dividends.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are options in the context of financial markets?

Options are contracts that provide the right to buy or sell an underlying asset at a specified price before a certain date.

Options are government bonds that pay fixed interest rates.

Options are loans that must be repaid with interest.

Options are stocks that represent ownership in a company.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a call option?

A call option is a financial contract that allows the holder to buy an asset at a set price before a certain date.

A call option is a contract to sell an asset at a fixed price.

A call option is a type of loan agreement.

A call option is a financial instrument that guarantees a profit.

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