How Much Do You Know About Capital Markets?

20 Questions | By Capitalmarkets | Updated: Mar 19, 2022 | Attempts: 538

Questions

Settings

Create your own Quiz

Test your knowledge!

Questions and Answers

1.

Stocks
- A.
  
  Are equity claims on the net income and assets of a corporation.
- B.
  
  Are accounts that can be bought from companies.
- C.
  
  Give the owner full ownership of the corporation/business.
- D.
  
  None of the above
2.

Mortgages are loans to households or firms to purchase
- A.
  
  Housing
- B.
  
  Land
- C.
  
  Real structures
- D.
  
  All of the above
3.

The mortgage market is the largest debt market in the United States.
- A.
  
  True
- B.
  
  False
4.

In consumer and band commercial loans, there are secondary markets.
- A.
  
  True
- B.
  
  False
5.

An IRA (Individual Retirement Account)
- A.
  
  Is not tax deductable with the original contribution.
- B.
  
  Does not have limitations on how much money can be invested in a given year.
- C.
  
  Can be opened and closed easily.
- D.
  
  Is an account that is started by a business for an individual.
6.

How much money can you invest in an IRA if you are over 50 years old?
- A.
  
  $8,000
- B.
  
  $8,500
- C.
  
  $6,000
- D.
  
  Both A and C
7.

With a Roth IRA,
- A.
  
  An individual's money will grow tax free with tax free withdrawals.
- B.
  
  An individual's money will grow tax free, but have taxes on withdrawals.
- C.
  
  The original contribution is tax deductable.
- D.
  
  The user can open and close the IRA easily.
8.

An IRA is started by an individual rather than a business.
- A.
  
  True
- B.
  
  False
9.

A 401(k) is an account opened for people who work for a non-profit organization or educational institution.
- A.
  
  True
- B.
  
  False
10.

In a 401(k) and 403(b) account
- A.
  
  It is the employer's choice as to what type of investment options will be offered to workers.
- B.
  
  One can borrow money from the account without penalty.
- C.
  
  Investment options are all the same.
- D.
  
  None of the above
11.

A countercyclic is
- A.
  
  An economic indicator that moves in the same direction as the economy.
- B.
  
  An economic indicator that moves in the opposite direction of the economy.
- C.
  
  An economic indicator that has no relation to the health of the economy.
- D.
  
  Generally of little use.
12.

The unemployment rate gets larger as the economy gets worse. This is an example of a(an)
- A.
  
  Procyclic
- B.
  
  Acyclic
- C.
  
  Countercyclic
13.

GDP (Gross Domestic Product) is measured
- A.
  
  Monthly.
- B.
  
  Annually.
- C.
  
  Bi-weekly.
- D.
  
  Quarterly.
14.

Which of the following is measured measured monthly?
- A.
  
  Unemployment Rate
- B.
  
  Labor Productivity
- C.
  
  New Construction
- D.
  
  All of the above
15.

Which of the following is not measured quarterly?
- A.
  
  Corporate Profits
- B.
  
  Business Sales and Inventories
- C.
  
  Real GDP
- D.
  
  National Income
16.

The unemployment rate is a lagged, countercyclical statistic.
- A.
  
  True
- B.
  
  False
17.

The level of civilian employment measures how many people are not working, so it is procyclic.
- A.
  
  True
- B.
  
  False
18.

Nominal interest rates are influenced by
- A.
  
  Taxes.
- B.
  
  Producer prices.
- C.
  
  Inflation.
- D.
  
  None of the above.
19.

A type of non-deductible account is
- A.
  
  After-tax contribution to employer plans.
- B.
  
  Non-qualified annuities.
- C.
  
  Non-dedictible IRAs.
- D.
  
  All of the above
20.

Stock brokers
- A.
  
  Are trained and licensed to provide advice and to expedite stock trades for individuals.
- B.
  
  Charge by commission.
- C.
  
  Charge by time and amount of service provided.
- D.
  
  All of the above