Financial Assets and Banking Instruments Quiz

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10 Questions

What is the monthly, quarterly, semiannual, or annual price paid for an insurance policy?

Premium

What are the five basic investment considerations?

Consistency, simplicity, the risk-return relationship, investment objectives, diversification

What do risky investments usually offer in terms of opportunities for returns?

Greater, high

What is a characteristic of credit unions based on the text provided?

They generally make riskier loans

What type of relationship does a bond represent?

Investment-interest

What is a common characteristic of a financial asset?

Bonds

What distinguishes a certificate of deposit from a savings account?

With a savings account, the bank issues a type of receipt showing you have loaned money to the bank.

Which of the following is necessary for the existence of financial intermediaries?

Savers

Why are banks considered financial intermediaries?

It channels savings to investors.

What is the primary factor on which capital formation depends?

Saving and borrowing

Test your knowledge about financial assets and banking instruments with this quiz. Learn the differences between various financial products like life insurance, bonds, pension, savings accounts, and certificates of deposit.

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