Quiz on Financial Markets

Which of the following is a type of security traded in money markets?

• Treasury bills

• Corporate bonds

• Stocks

• Real estate

What is a key characteristic of capital markets?

• They deal with short-term securities.

• They deal with long-term securities.

• They deal with real estate.

• They deal with commodities.

How do investors' funds flow throughout the economy?

• Through government grants

• Through financial markets

• Through direct cash transfers

• Through barter systems

Which of the following is an example of a commercial bank?

• Amazon

• Bank of America

• Google

• Walmart

What is the primary purpose of financial institutions?

• To channel funds from savers to investors

• To entertain the public

• To create art

• To build roads

Which of the following is a function of financial markets?

• To facilitate the flow of funds

• To produce consumer goods

• To provide healthcare services

• To enforce legal regulations

What is the primary function of financial markets?

• To regulate interest rates

• To facilitate the flow of funds

• To control inflation

• To manage government budgets

Which type of market involves the trading of existing securities?

• Primary market

• Secondary market

• Money market

• Capital market

What is a key function of primary markets?

• Facilitating the sale of new financial instruments

• Regulating interest rates

• Providing consumer loans

• Offering insurance policies

What do fund demanders seek in primary markets?

• Capital

• Labor

• Technology

• Real estate