Investing and Financial Markets

Question 1

Which factors can affect a stock’s price? Check all that apply.

Question 2

What can be traded in a commodities market?

Revolt · Accepted Answer

oil

Question 3

Which types of investments are securities?

Revolt · Accepted Answer

both debt and equity

Question 4

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 5

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 6

How do bonds generate income for investors?

Revolt · Accepted Answer

Bonds pay a specified amount to the investor at maturity.

Question 7

most

Revolt · Accepted Answer

hiring workers; producing goods; distributing goods; buying materials

Question 8

best

Revolt · Accepted Answer

They both receive capital to use for growth.

Question 9

Which best describes what generally occurs in financial markets?

Revolt · Accepted Answer

Assets are traded.

Question 10

Which is true about investments and risk?

Revolt · Accepted Answer

Every investment carries some degree of risk.

Investing and Financial Markets Answers