Investing and Financial Markets

Question 1

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

Revolt · Accepted Answer

risk

Question 2

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

Question 3

How do bonds generate income for investors?

Revolt · Accepted Answer

Bonds pay a specified amount to the investor at maturity.

Question 4

most

Revolt · Accepted Answer

hiring workers; producing goods; distributing goods; buying materials

Question 5

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

Revolt · Accepted Answer

An investor makes money by earning interest.

Question 6

best

Revolt · Accepted Answer

They both receive capital to use for growth.

Question 7

Capital appreciation refers to

Revolt · Accepted Answer

the increased value of an asset.

Question 8

best

Revolt · Accepted Answer

by selling the asset for a profit

Question 9

Which best describes what generally occurs in financial markets?

Revolt · Accepted Answer

Assets are traded.

Question 10

If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?

Revolt · Accepted Answer

No, the payment of dividends indicates that a company has earned profits.

Investing and Financial Markets Answers