2.00 Financial Planning Practice Quiz

Which type of financial market sells new stock or bond issues to investors?

• primary capital

• soft commodities

• secondary capital

• hard commodities

The term that refers to how easily an asset can be converted to cash is known as:

• commodity

• currency

• Eurobond

• liquidity

In which financial market do people make investments in cocoa beans and corn?

• money

• insurance

• soft commodities

• selective property

A type of market that allows traders to trade any time the market is open is known as a:

• call market

• bond market

• financial market

• continuous market

A type of market in which each transaction takes place at predetermined time intervals is referred to as a:

• call market

• bond market

• financial market

• continuous market

A form of money held or traded outside the country in whose currency its value is stated is known as:

• U.S. currency

• Eurocurrency

• export currency

• import currency

A marketplace where trading of securities such as equities, bonds, currencies, and derivatives occurs is referred to as a:

• call market

• bear market

• financial market

• foreign exchange market

A level of performance that describes using the least amount of input to achieve the highest amount of output is known as:

• commodity

• efficiency

• liquidity

• market

Patrick wants to keep a certain amount of his money in a safe place in which he can earn interest on his savings, and also be able to withdraw his funds without experiencing sizable financial penalties. In what type of financial institution should Patrick consider placing his money?

• a retail bank

• the stock market

• a retirement fund

• a holding company

Individuals are most likely to require the services of a mortgage company when they want to:

• purchase real estate

• earn interest on savings

• acquire liability insurance

• invest in the stock market