1. Which financial market role gives investors the opportunity to hedge their risk of loss?
Price discovery
Risk management
Liquidity function
Provision of transaction services
2. Which of the following countries is NOT a member of the G8 group of nations? YOU SHOULD KNOW THIS.
United States
United Kingdom
China
Japan
Germany
3. Which of the following financial assets is a money market asset?
CD
Preferred stock
Common stock
10-year government bond
All of the above are money market assets
4. The payments function of the financial system is designed to provide a means to store purchasing power until needed at a future date for spending on goods and services.
True
False
5. The ____ enables the trading of contracts that grant the RIGHT to buy or sell certain securities at pre-specified prices within a certain time.
Options market
Forward market
Futures market
Spot market
6. The financial system and financial markets are responsible for providing which of the following services?
Credit services
Payment services
Liquidity
Facilitating the flow of savings
All of the above
7. The market for trading newly issued securities is known as the:
money market
cash market
spot market
primary market
open market