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quiz-1fm

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

The owner of a financial security is known as

a)

An investor

b)

debtor

c)

broker

d)

both investor and debtor

2.

A contract that makes the owner of a security a part owner of the company that issued the security is known as

a)

a debt security

b)

an equity security

c)

a bond

d)

an option

3.

investors buy bonds from a company, and the company returns the amount of the bonds within an agreed period, plus interests in this type of financial market

a)

stock market

b)

bond market

c)

commodity market

d)

derivative market

4.

contracts whose value is based on the market value of the asset being traded in this type of financial market

a)

stock market

b)

bond market

c)

commodity market

d)

derivative market

5.

where traders and investors buy and sell natural resources or corn, oil, meat, and gold in this type of financial market

a)

stock market

b)

bond market

c)

commodity market

d)

derivative market

6.

The following statements are financial fundamentals except

a)

Learn How to Read and Use Business Financial Statements

b)

Learn How Business Insurance Can Protect Your Investment:

c)

Understand the Financial Implications of a New Hire

d)

none of the choices given

7.

The following statements are elements of financial investment except

a)

Lenders and Barrowers

b)

Financial Intermediaries

c)

Price discovery

d)

none of the choices given

8.

this is the problem investors experience in distinguishing low-risk borrowers before making an investment

a)

Adverse Selection

b)

Moral hazard

c)

Transaction cost

d)

none of the choices given

9.

this is the problem investors experience in verifying that borrowers are using their funds as intended

a)

Adverse Selection

b)

Moral hazard

c)

Transaction cost

d)

none of the choices given

10.

________percent of Adult Filipinos still unbanked

a)

72%

b)

71%

c)

73%

d)

70%