wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

Chapter 10 Financial Markets Review

Total questions: 35

Worksheet time: 2hrs 45mins

Name
Class
Date
1.

What is the vital function of financial markets?

a)
They regulate interest rates for loans.
b)
They provide insurance for investments.
c)
They create job opportunities for the unemployed.
d)
They transfer funds from savers to borrowers.
2.

Who are two depository Institutions?

a)

Commercial banks

b)

Credit Unions

c)

Investment banks

d)

Securities brokers

3.

Which is the most common type of depository institution?

a)
Credit unions
b)
Investment banks
c)
Savings and loan associations
d)
Commercial banks
4.

What is the major focus of Savings and Loan associations?

a)
Accepting deposits and using them to make mortgage loans.
b)
Offering checking accounts with high interest rates.
c)
Providing personal loans without collateral.
d)
Investing in stocks and bonds.
5.

What are three examples of nondepository Financial Institutions?

a)

Institutional investors

b)

Securities brokers

c)

Commercial Banks

d)

Investment banks

6.

Who are the two of the largest institutional investors?

a)

BlackRock

b)

Vanguard Group

c)

Charles Schwab

d)

Robinhood

7.

What did the Federal Reserve Act of 1913 create and what was its purpose?

a)
The Federal Reserve System (The Fed) to serve as the central bank in the United States.
b)
The Federal Reserve Act of 1913 established the Federal Trade Commission.
c)
The Federal Reserve Act of 1913 created the Securities and Exchange Commission.
d)
The Federal Reserve Act of 1913 abolished the gold standard.
8.

What did the Banking Act of 1933 (Glass-Steagall Act) establish?

a)
It established the SEC to regulate stock markets.
b)
It created the Federal Reserve System.
c)
It abolished all bank regulations.
d)
It established the FDIC, which ensures depositors when a bank fails.
9.

What did the Securities Exchange Act of 1934 create and what was its purpose?

a)
The Securities Exchange Act of 1934 abolished the SEC to reduce market oversight.
b)
The Securities Exchange Act of 1934 created the Federal Reserve to manage interest rates.
c)
The Securities Exchange Act of 1934 established the Commodity Futures Trading Commission (CFTC) for agricultural markets.
d)
The Securities Exchange Act of 1934 created the Securities and Exchange Commission (SEC) to oversee the securities market.
10.

What is insider trading?

a)
The practice of using inside information to profit unfairly from trading in a company’s securities.
b)

The act of buying and selling securities without any inside knowledge.

c)
A method of investing in stocks without any prior knowledge.
d)
The legal practice of trading based on public information.
11.

What did the Financial Services Modernization Act of 1999 do?

a)
It mandated that all banks must offer insurance services.
b)
It strengthened the Glass-Steagall Act's restrictions on banks.
c)
It reversed the Glass-Steagall Act’s prohibition of commercial banks selling insurance or acting as investment banks.
d)
It allowed banks to only sell stocks and bonds.
12.

What are two of the basic rights of common stockholders?

a)

Voting rights

b)

Right to dividends

c)

Right to strike

d)

Right to form a union

13.

What preferential treatment do preferred stockholders get?

a)
Preferred stockholders receive higher interest rates than bondholders.
b)
Preferred stockholders have voting rights equal to common stockholders.
c)
Preferred stockholders receive priority in dividend payments and asset distribution.
d)
Preferred stockholders are guaranteed a fixed return regardless of company performance.
14.

What is a formal IOU issued by a corporation or government called?

a)

Loan

b)

Bond

c)
Mortgage
d)
Equity
15.

What is the date that a bond comes due called?

a)
Redemption date
b)
Issuance date
c)
Coupon date
d)
Maturity date
16.

What is the amount that a bond issuer owes the bondholder at maturity called?

a)
Yield to maturity
b)
Market value
c)
Coupon rate
d)
Face value or par value
17.

What is the interest rate paid on a bond called?

a)
Yield rate
b)
Coupon rate
c)
Market rate
d)
Face value
18.

What is a bond or preferred stock that gives the holder the right to exchange it for common stock called?

a)
Equity share
b)
Debt instrument
c)
Convertible security
d)
Warrant
19.

What is the strategy of investing in a wide variety of securities to reduce risk called?

a)
Diversification
b)
Stock Picking
c)
Market Timing
d)
Asset Allocation
20.

What are two features that make mutual funds a popular choice for investors?

a)

Diversification at a relatively low cost

b)
High fees
c)
Limited investment options
d)

Liquidity

21.

What is the market where newly issued securities are traded?

a)
Primary market
b)
Secondary market
c)
Over-the-counter market
d)
Derivatives market
22.

What is the market where previously issued securities are traded?

a)
Initial public offering
b)
Over-the-counter market
c)
Secondary market
d)
Primary market
23.

What are the two methods of issuing securities in the primary market?

a)
Direct listing and auction
b)
Initial coin offering and crowdfunding
c)
Bond issuance and stock buyback
d)
Public offering and private placement
24.

What is called when a company issues stock for the first time and may be bought by the general public?

a)
Initial Public Offering (IPO)
b)
Secondary Market Offering
c)
Private Placement
d)
Bond Issuance
25.

What is an organized venue for trading stock and other securities?

a)
Brokerage firm
b)
Stock exchange
c)
Bank
d)
Investment club
26.

Where are stocks that are not listed on stock exchanges traded?

a)
Over-the-counter (OTC) markets
b)
Through crowdfunding platforms
c)
In private equity markets
d)
On major stock exchanges
27.

What does a full service broker provide?

a)
A wide range of services such as market research, investment advice, and tax planning in addition to carrying out your trades.
b)
Basic trading services without additional support.
c)
Only tax planning services without investment advice.
d)
Exclusive access to high-risk investment opportunities.
28.

What does a discount broker provide?

a)
Access to exclusive investment opportunities.
b)
Comprehensive financial planning services.
c)
The basic services needed to buy and sell securities.
d)
Investment advice and portfolio management.
29.

What is an order telling a broker to buy or sell a specific security at the best currently available price?

a)
Market order
b)

Limit order

c)

None of the answers

d)

Both market and limit order

30.

What is an order to a broker to buy a specific stock only if its price is below a certain level, or to sell a specific stock only if its price is above a certain level?

a)
Limit order
b)

Market order

c)

None of the answers

d)

Both limit and market order

31.

What is the market strategy that favors trying to find stocks that are undervalued in the market?

a)
Value investing
b)

Buy and holding

c)

Investing for growth

d)

Market timing

32.

What are two of the best known stock indices?

a)
NASDAQ Composite and FTSE 100
b)
S&P 500 and Dow Jones Industrial Average
c)
Russell 2000 and Nikkei 225
d)
DAX and Hang Seng Index
33.

What does “bid” mean?

a)
Bid is the lowest price currently offered to sell a stock.
b)
Bid is the highest price currently offered to buy a stock.
c)
Bid refers to the total number of shares available for purchase.
d)
Bid is the average price of a stock over the last month.
34.

What does “ask” mean?

a)
The lowest price currently offered to sell a stock.
b)
The price at which a stock was last traded.
c)
The average price of a stock over the last month.
d)
The highest price currently offered to buy a stock.
35.

What does “volume” mean?

a)
The total market capitalization of a company.
b)
The price at which a stock is currently trading.
c)
The number of shares a company has issued.
d)
The number of shares of stock that have been traded during a trading period.

Similar Resources on Wayground

Business Management Chapter 1 Review

34 questions

Business Management Chapter 1 Review

quiz

Worksheet

•

9th - 12th Grade

Accounting Basics

37 questions

Accounting Basics

quiz

Worksheet

•

9th - 12th Grade

Creative iMedia R081 - Client requirements and Research

30 questions

Creative iMedia R081 - Client requirements and Research

quiz

Worksheet

•

9th - 11th Grade

BC07_Small Biz

38 questions

BC07_Small Biz

quiz

Worksheet

•

9th - 12th Grade

Supply & Demand Key Terms

35 questions

Supply & Demand Key Terms

quiz

Worksheet

•

9th - 12th Grade

Principles of Business 9e Chapter 17

30 questions

Principles of Business 9e Chapter 17

quiz

Worksheet

•

9th - 12th Grade

Unit 2 Exam

40 questions

Unit 2 Exam

quiz

Worksheet

•

9th - 12th Grade

Accounting II - Chapter 10 Test Review

40 questions

Accounting II - Chapter 10 Test Review

quiz

Worksheet

•

9th - 12th Grade