Financial Markets and Investment Opportunities Quiz

Test your investment knowledge with 13 questions covering stocks, bonds, markets, and strategies. Explore bull vs bear markets, risk assessment, and more.

#1

Which of the following is a characteristic of a bull market?

Declining stock prices
Pessimistic investor sentiment
Rising stock prices
High unemployment rates
#2

What is the primary function of a stock exchange?

To lend money to corporations
To facilitate buying and selling of securities
To provide insurance services
To regulate government bonds
#3

Which of the following investment vehicles is generally considered to have the least risk?

Stocks
Corporate bonds
Treasury bonds
Derivatives
#4

What is the term for a situation where a company offers its shares to the public for the first time?

IPO (Initial Public Offering)
M&A (Mergers and Acquisitions)
LBO (Leveraged Buyout)
SEC (Securities and Exchange Commission)
#5

What is the term for the process of spreading investments across various asset classes to reduce risk?

Concentration
Diversification
Consolidation
Aggregation
#6

Which of the following is NOT a major type of financial market?

Equity market
Money market
Labor market
Bond market
#7

Which investment option typically offers the highest potential returns with the highest risk?

Government bonds
Stocks
Savings accounts
Certificates of deposit
#8

What is the term for the simultaneous buying and selling of the same security on different exchanges or markets to profit from price discrepancies?

Arbitrage
Hedging
Speculation
Options trading
#9

What is the term for a situation where investors rush to sell off assets, causing a rapid decline in market prices?

Boom
Recession
Bear market
Market correction
#10

What is the name of the index that measures the performance of the 30 largest companies listed on the New York Stock Exchange (NYSE) and the NASDAQ?

FTSE 100
Dow Jones Industrial Average (DJIA)
S&P 500
NASDAQ Composite
#11

Which financial instrument provides a steady stream of income to the investor, typically issued by corporations or governments?

Stocks
Mutual funds
Bonds
ETFs (Exchange-Traded Funds)
#12

What is the name of the measure that reflects the sensitivity of an investment's price to changes in interest rates?

Alpha
Beta
Gamma
Delta
#13

Which of the following economic indicators is NOT typically associated with an expansionary phase of the business cycle?

Rising GDP
Decreasing unemployment
Declining consumer spending
Increasing industrial production

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