Quiz  /  Financial Markets Class 9 MCQ Questions With Answers

  • 1. 
    Collects funds from savers and invests the funds in loans and other financial assets

  • investment objective
  • secondary market
  • primary market
  • financial intermediary

  • 2. 
    "Bull Market"

  • A period of time during which stock prices are falling
  • A period of time during which stock prices are rising
  • The network of structures that allows for the transfer of money between savers and investors
  • Making high-risk investments with borrowed money

  • 3. 
    Profits made from investments are reported as...

  • Capital Gains
  • Capital Losses
  • Bull Markets
  • Bear Markets

  • 4. 
    "Yield"

  • Money received after making an investment
  • Percentage of an original investment that an investor collects
  • The rate of return on a bond
  • The interest rate a bond seller pays a bond buyer

  • 5. 
    Which tends to be riskier, stocks or bonds?

  • Stocks
  • Bonds
  • Neither are risky
  • Both are equally risky

  • 6. 
    Banks bring together...

  • savers and spenders
  • savers and borrowers
  • dealers and druggies
  • cheeseburgers and fries

  • 7. 
    The interest rate paid on a bond

  • Coupon rate
  • Par Value
  • bond premium
  • capital gain

  • 8. 
    Corporate bonds are issued by...

  • Private Companies
  • Local Governments
  • The Federal Government
  • Banks

  • 9. 
    The amount that a bond issuer promises to pay the buyer at maturity.

  • Par value
  • coupon rate
  • Capital gain
  • return

  • 10. 
    The use of income today that allows for greater production in the future.

  • Investment
  • Savings
  • secondary market
  • risk

  • 11. 
    "Bear Market"

  • A period of time during which stock prices are falling
  • A period of time during which stock prices are rising
  • The network of structures that allows for the transfer of money between savers and investors
  • Making high-risk investments with borrowed money

  • 12. 
    Market where financial assets are resold

  • primary market
  • secondary market
  • tertiary market
  • money market

  • 13. 
    "Stock Exchange"

  • A person who manages the buying and selling of stocks
  • A market where stocks can be bought and sold
  • The range of investments held by a person or organization
  • A report that describes a company's financial history

  • 14. 
    Two issues that play a major role in setting an investment objective.

  • time and results
  • time and income
  • diversification and return
  • risk and return

  • 15. 
    The share of ownership in a corporation that gives holders voting rights and a share of profit.

  • Common Stock
  • Preferred Stock
  • Stock index
  • primary market

  • 16. 
    What is the relationship between risk and return?

  • inverse
  • direct
  • multiple
  • opposite

  • 17. 
    High-risk bonds issued by new companies are often called...

  • Junk Bonds
  • Savings Bonds
  • Municipal Bonds
  • James Bonds

  • 18. 
    Income not used for consumption

  • Investment
  • Savings
  • diversification
  • return

  • 19. 
    When it comes to investments in general, the higher the ____ the higher the potential reward.

  • Security
  • Cost
  • Risk
  • Damage

  • 20. 
    Stock that is paid first and offers no voting rights

  • common stock
  • preferred stock
  • stock exchange
  • Primary stock
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