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FINANCE_FINANCIAL SECURITIES

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

Which service is not provided by Investment Bank?

a)

Banking Service

b)

Insurance Service

c)

Consultancy Service

d)

Venture Capital Financing

2.

What type of stock would have voting rights?

a)

preferred stock

b)

common stock

c)

stock

d)

option

3.

What is it called when the stock market rises for a period of time?

a)

bull market

b)

stock market

c)

bear market

d)

growth market

4.

What is it called when you loss money on stocks you have purchased.

a)

capital gain

b)

capital loss

c)

capital of NY

d)

corporate loss

5.

Does a bear market mean the stock market is rising or going down?

a)

rising

b)

going down

c)

staying the same

d)

cross dimensional static drift

6.

Who is someone who acquires goods and services for his or her own personal use?

a)

market economy

b)

consumer

c)

producer

d)

seller

7.

In a financial market, the price to borrow money is called the?

a)

Interest Rate

b)

Deposit

c)

Credit

d)

Cost

8.

Which component of capital structure determines the financial risk?

a)

Equity

b)

Retained Earnings

c)

Debt

9.

Fixed assets of the business firm should be financed through :

a)

Short term Liability

b)

Long term liability

c)

A mix of long term and short term liability

d)

A Mix of long term and short term liability None of the above

10.

If the return on investment is 10 % and the rate of interest is 12% then which source of the fund should be used for maximizing shareholder's wealth.

a)

Debt

b)

Equity

c)

BOTH THE ABOVE

d)

NONE OF THESE

11.

A higher level of sales will require a higher level of working capital.

a)
b)
12.

Which of the following could be turned into cash the easiest or quickest?

a)

Raw materials

b)

Finished product

c)

Semi-finished product

d)

None of these

13.

(a)   is an agreement or contract between an investor (lender) and a debtor (borrower), typically a business firm or government body

14.

________interest payments on a bond

a)

Coupon payments

b)

Par value

c)

Dividend

15.

These are financial contracts that obligate the contracts’ buyers to purchase an asset at a pre-agreed price on a specified future date.

a)

Forwards and futures

b)

Common and preferred stocks

c)

Bonds

d)

Options and swaps