COPY: Financial Markets Quiz

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Questions and Answers

What is a financial market?

A market where physical goods are traded at high transaction costs
A market where physical goods are traded at low transaction costs
A market where financial securities are traded at low transaction costs (correct)
A market where financial securities are traded at high transaction costs

What is the primary purpose of financial markets?

To facilitate the trade of physical goods
To predict future changes in the stock market
To control risk
To raise finances (correct)

What are derivative products?

Physical products that are used to control risk or exploit risk
Physical products that are used to raise finances
Financial products that are used to control risk or exploit risk (correct)
Financial products that are used to raise finances

What is technical analysis?

The basis of attempting to predict future changes in the stock market (C) Signup and view all the answers

What is volatility?

The scale of changes in price over some unit of time (A) Signup and view all the answers

What is the difference between the primary market and the secondary market?

Primary market is where newly started companies issue shares to the public for the first time through IPO, while secondary market is where second hand securities are sold (D) Signup and view all the answers