QUESTION 2

Which financial market role gives investors the opportunity to hedge their risk of loss?

		Price discovery
		Risk management
		Liquidity function
		Provision of transaction services

1 points

QUESTION 3

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

1 points

QUESTION 4

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

1 points

QUESTION 5

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

1 points

QUESTION 6

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

1 points

QUESTION 7

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

1 points

QUESTION 8

The market for trading newly issued securities is known as the:

		money market
		cash market
		spot market
		primary market
		open market