How Much Do You Know About Capital Markets?

20 Questions | Total Attempts: 519

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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

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