1. Risk aversion means

People take risks because they are not threatened by them

People take slow since they are afraid of its consequences

People disregard risks since these are irrelevant

People like risks since these raise earnings

2.Volatility risks are risks due to

Inflation

Fluctuations

Price increases

The pandemic

1. Liquidity risks relate to risks associated with

Covering debt obligations

Paying for fees and commissions

Long-term payments

All of the above

1. Which risk management refer to assigning risks to a third party?

Diversification

Protection

Avoidance

Transfer

1. What contributes to profitable ventures for hard earned money?

Risks and time

Interests and risks

Stocks and investments

All of the above

1. Which does operational risk involve?

Machine breakdowns

Delays in supply deliveries

Workplace accidents

All of the above

1. Currency risks are due to

Exchange rates

Economic changes

Market fluctuations

All of the above

1. Insurance is what form of risk management?

Avoidance

Protection

Trading of risks against returns

Transfer

1. When companies inform the public about its status and prospects, there is

Transparency

Publicity

Informational efficiency

Efficient market

1. What are referred to be new issues in the market?

Primary market

Secondary market

Third-liner investments

First-liner investments

1. Bonds that use real-estate properties are called

Collateralized funds

Investment securities

Mortgage-backed bonds

Assured bond markets

1. What is used to pay for government expenditures?

Treasury bonds

Bond markets

Government budget

Money market securities

1. What is the value to an investor of owning a bond?

Earnings

Interest rate

Default risk

Puttable bonds

1. Which is not a function of the stock market?

Efficient price recovery

Balanced regulation

Fair dealings in securities transactions

Protection of broker's welfare

1. Among the types of banks, which are closely similar?

Retail and commercial banks

Mutual banks and credit unions

Savings and loans and private banks

All of the above

When do mutual funds obtain capital gains?

Price of fund holdings increase and not sold by fund manager

Price of securities are increased and then sold

Price of fund fluctuates in price

Price of securities dropped significantly

What earns a little higher than savings deposits?

Money market

Index funds

Treasury bills

Mutual funds

Which is an example of a specialty fund?

1. Funds from socially responsible firms
2. Funds from firms which contribute to environmental preservation
3. Funds from companies which support people's rights
4. All of the above

1. What happens to interest rates when there are shifts of demand in loans to the left of the graph?

It increases

It decreases

d. It remains constant

1. None of the above

1. What allows for the optimal capital-output ratio?

a. Expected sales

b. Flexible accelerator

c. Replacement investment

d. Investment behavior