3.4 Investing and Financial Markets

Question 1

Which are common types of bonds that are currently issued? Check all that apply.

Question 2

Which term refers to the possibility of an investor losing some or all of an investment?

Revolt · Accepted Answer

risk

Question 3

Once stocks are on the market, which best explains how their prices are set?

Revolt · Accepted Answer

Prices fluctuate on the basis of demand.

Question 4

Since stocks can be traded online, which purpose is best served by markets?

Revolt · Accepted Answer

Markets are where the trades actually occur.

Question 5

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?

Revolt · Accepted Answer

The issuer could go bankrupt.

Question 6

Which best describes what generally occurs in financial markets?

Revolt · Accepted Answer

Assets are traded.

Question 7

best

Revolt · Accepted Answer

They both receive capital to use for growth.

Question 8

Which is true about investments and risk?

Revolt · Accepted Answer

Every investment carries some degree of risk.

Question 9

Which statement best describes how an investor makes money off debt?

Revolt · Accepted Answer

An investor makes money by earning interest.

Question 10

Which best describes what generally occurs in financial markets?

3.4 Investing and Financial Markets Answers