Investing and Financial Markets

Question 1

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 2

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

Revolt · Accepted Answer

An investor makes money by earning interest.

Question 3

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

Question 4

best

Revolt · Accepted Answer

by selling the asset for a profit

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

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

Revolt · Accepted Answer

risk

Question 7

Which is true about investments and risk?

Revolt · Accepted Answer

Every investment carries some degree of risk.

Question 8

Capital appreciation refers to

Revolt · Accepted Answer

the increased value of an asset.

Question 9

most

Revolt · Accepted Answer

hiring workers; producing goods; distributing goods; buying materials

Question 10

How do bonds generate income for investors?

Revolt · Accepted Answer

Bonds pay a specified amount to the investor at maturity.

Investing and Financial Markets Answers