Q.1
A trader use borrowed funds from a broker for purchasing securities. State which type of trading is this?
  • Debt trading
  • Lease trading
  • Margin trading
  • Hire purchasing
Q.2
_______ is an agreement to buy or sell at a specific date in the future at a predetermined price
  • equities
  • futures contract
  • bond
  • savings
Q.3
_______ stocks that represent ownership shares in corporations
  • equities
  • capital market
  • secondary market
  • futures contract
Q.4
_______ the dollars that become available for investors to use when others refrain from consuming
  • risk
  • equities
  • bond
  • savings
Q.5
_______ a market in which all financial assets can be sold to someone other than the original issuer
  • primary market
  • secondary market
  • financial system
  • capital market
Q.6
_______ a market in which financial capital is loaned and/or borrowed for at least one year
  • primary market
  • secondary market
  • financial system
  • capital market
Q.7
_______ a strategy of holding different kinds of investments to minimize risk
  • portfolio diversification
  • bond
  • futures contract
  • risk
Q.8
_______ a market in which only the original issuer can sell or repurchase a financial asset
  • financial system
  • primary market
  • capital market
  • secondary market
Q.9
The rate of return on a corporate, municipal, or government bond is its _______ .
  • par value
  • compensation rate
  • interest rate
  • coupon rate
Q.10
Junk bonds usually have low ratings because _______ .
  • they have a low rate of return
  • they have a low risk of default
  • they are not risky investments
  • they are a high-risk investment
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