1. Risk aversion means
2. People take risks because they are not threatened by them
3. People take slow since they are afraid of its consequences
4. People disregard risks since these are irrelevant
5. People like risks since these raise earnings

1. Volatility risks are risks due to
2. Inflation
3. Fluctuations
4. Price increases
5. The pandemic

1. Liquidity risks relate to risks associated with
2. Covering debt obligations
3. Paying for fees and commissions
4. Long-term payments
5. All of the above

1. Which risk management refer to assigning risks to a third party?
2. Diversification
3. Protection
4. Avoidance
5. Transfer

1. What contributes to profitable ventures for hard earned money?
2. Risks and time
3. Interests and risks
4. Stocks and investments
5. All of the above

1. Which does operational risk involve?
2. Machine breakdowns
3. Delays in supply deliveries
4. Workplace accidents
5. All of the above

1. Currency risks are due to
2. Exchange rates
3. Economic changes
4. Market fluctuations
5. All of the above

1. Insurance is what form of risk management?
2. Avoidance
3. Protection
4. Trading of risks against returns
5. Transfer

1. When companies inform the public about its status and prospects, there is
2. Transparency
3. Publicity
4. Informational efficiency
5. Efficient market

1. What are referred to be new issues in the market?
2. Primary market
3. Secondary market
4. Third-liner investments
5. First-liner investments

1. Bonds that use real-estate properties are called
2. Collateralized funds
3. Investment securities
4. Mortgage-backed bonds
5. Assured bond markets

1. What is used to pay for government expenditures?
2. Treasury bonds
3. Bond markets
4. Government budget
5. Money market securities

1. What is the value to an investor of owning a bond?
2. Earnings
3. Interest rate
4. Default risk
5. Puttable bonds

1. Which is not a function of the stock market?
2. Efficient price recovery
3. Balanced regulation
4. Fair dealings in securities transactions
5. Protection of broker's welfare

1. Among the types of banks, which are closely similar?
2. Retail and commercial banks
3. Mutual banks and credit unions
4. Savings and loans and private banks
5. All of the above

1. When do mutual funds obtain capital gains?
2. Price of fund holdings increase and not sold by fund manager
3. Price of securities are increased and then sold
4. Price of fund fluctuates in price
5. Price of securities dropped significantly

1. What earns a little higher than savings deposits?
2. Money market
3. Index funds
4. Treasury bills
5. Mutual funds

1. Which is an example of a specialty fund?
2. Funds from socially responsible firms
3. Funds from firms which contribute to environmental preservation
4. Funds from companies which support people's rights
5. All of the above

1. What happens to interest rates when there are shifts of demand in loans to the left of the graph?
2. It increases
3. It decreases
4. It remains constant
5. None of the above

1. What allows for the optimal capital-output ratio?
2. Expected sales
3. Flexible accelerator
4. Replacement investment
5. Investment behavior