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Alternative Assets and Financial Concepts Quiz
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Alternative Assets and Financial Concepts Quiz

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Questions and Answers

What is the definition of an alternative asset class?

  • A financial asset that does not fit into the conventional equity/income/cash categories. (correct)
  • A financial asset with no economic value that an individual or corporation owns or controls.
  • A financial asset that fits into the conventional equity/income/cash categories.
  • A group of financial instruments that behave differently in the marketplace.
  • What is an asset class defined as?

  • A group of financial instruments with varying financial characteristics.
  • Financial assets with diverse characteristics.
  • A group of financial instruments with similar characteristics and behavior in the marketplace. (correct)
  • Financial instruments that always provide future benefits.
  • What does the bid-ask spread represent?

  • The percentage change in the value of an asset over time.
  • The difference between the highest buyer's price and the lowest seller's price. (correct)
  • The average price of an asset in the market.
  • The price at which an asset was last traded.
  • What is a common characteristic of a debt instrument?

    <p>They usually require a fixed payment to the holder, often with interest.</p> Signup and view all the answers

    What does credit risk (default risk) refer to?

    <p>The probability of financial loss due to a borrower's failure to repay a loan.</p> Signup and view all the answers

    What is the main characteristic of a derivative instrument?

    <p>It derives its performance from an underlying asset.</p> Signup and view all the answers

    What does the term 'market capitalization' refer to?

    <p>The total dollar market value of all of a company's outstanding shares</p> Signup and view all the answers

    What is the main characteristic of fixed income instruments?

    <p>They pay a fixed rate of interest</p> Signup and view all the answers

    What is the primary function of financial intermediaries?

    <p>Act as a middleman to facilitate financial transactions</p> Signup and view all the answers

    What defines an emerging market?

    <p>An economy with considerable economic growth and some characteristics of a developed economy</p> Signup and view all the answers

    What is the meaning of liquidity in financial terms?

    <p>The ease of buying or selling a security quickly at a price reflecting its value</p> Signup and view all the answers

    What is the key characteristic of an intangible asset?

    <p>It has no physical form</p> Signup and view all the answers

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