Financial Assets and Liabilities Quiz

Stock represents ownership in a company and is a tradable financial asset.

Liabilities are financial obligations or debts that a company owes to external parties.

Stock exchanges provide a platform for the trading of various securities, such as stocks and bonds.

The Balance Sheet provides a snapshot of a company's financial position, detailing its assets, liabilities, and equity at a specific moment.

A futures contract is a derivative that obligates the parties to buy or sell an asset at a predetermined future date and price.

The Income Statement shows a company's revenues, expenses, and profits or losses over a given time.

Derivatives are financial instruments used to manage or transfer risk between different parties in the market.

Credit rating agencies evaluate and assign credit ratings to assess the creditworthiness of financial products and issuers.

The Current Ratio assesses a company's ability to cover its short-term liabilities with its short-term assets.

Central banks control a country's money supply and implement monetary policies to achieve economic goals.

Yield on a bond represents the interest rate earned by the bondholder.

Real estate is a physical asset, not a financial asset, as it represents ownership of property or land.

Liquid assets are easily tradable, but their value can fluctuate; stability is not a characteristic.