#1
What is the law of demand in economics?
As prices decrease, demand decreases
As prices decrease, demand increases
As prices increase, demand decreases
As prices increase, demand increases
#2
What is a 'bull market' in finance?
A market with decreasing stock prices
A market with increasing stock prices
A market with stable stock prices
A market with no stock activity
#3
What is the function of a stock exchange in financial markets?
To control interest rates
To facilitate the buying and selling of stocks and other securities
To set prices in the foreign exchange market
To regulate and supervise commercial banks
#4
What is the concept of 'supply chain' in economics?
The network of retailers selling a particular product
The process of producing and delivering goods to consumers
The total quantity of a good that producers are willing to sell
The total quantity of a good that consumers are willing to buy
#5
Which of the following is a characteristic of a perfectly competitive market?
Few sellers
Product differentiation
Price taker behavior
Barriers to entry
#6
In the foreign exchange market, what does the term 'exchange rate' refer to?
The rate at which goods are exchanged between countries
The rate at which one currency can be exchanged for another
The rate at which stocks are exchanged
The rate at which bonds are exchanged
#7
What is the role of a central bank in a country's economy?
To regulate and supervise commercial banks
To provide loans to individuals
To set prices in the stock market
To manage local retail businesses
#8
In the context of financial markets, what does the term 'liquidity' refer to?
The ease with which an asset can be converted to cash
The total value of a company's assets
The profitability of a business
The level of government debt
#9
What is a 'derivative' in financial markets?
A primary financial instrument
A financial contract whose value is derived from an underlying asset
A form of government-issued currency
A type of stock market index
#10
What is the significance of the Dow Jones Industrial Average (DJIA) in financial markets?
It represents the average salary of industrial workers in the United States
It measures the average performance of a selected group of stocks
It indicates the inflation rate in the economy
It measures the GDP of a country
#11
What is the concept of 'opportunity cost' in economics?
The cost of producing an additional unit of a good or service
The cost of forgoing the next best alternative when making a decision
The cost of raw materials in production
The cost of government intervention in the market
#12
In the context of supply and demand, what does the term 'elasticity' refer to?
The measure of the responsiveness of quantity demanded to a change in price
The measure of the responsiveness of quantity supplied to a change in price
The measure of government intervention in the market
The measure of market concentration
#13
What is the Efficient Market Hypothesis (EMH) in finance?
The idea that financial markets are always inefficient
The idea that all available information is reflected in asset prices
The idea that only stock markets are efficient
The idea that government intervention is necessary for market efficiency
#14
What is the role of a market maker in financial markets?
To regulate stock prices
To facilitate the buying and selling of financial instruments
To set interest rates
To control inflation
#15
In the context of foreign exchange, what is the role of a 'pip'?
A unit of measurement for percentage change in interest rates
A small price movement in a currency pair
A government bond issued by a foreign country
A monetary unit used in cryptocurrency transactions
#16
What is the purpose of a futures contract in financial markets?
To buy or sell an asset at a future date for a predetermined price
To provide insurance against stock market fluctuations
To regulate the foreign exchange market
To set interest rates in the banking sector
#17
In financial markets, what does the term 'arbitrage' refer to?
The buying and selling of financial instruments
The simultaneous buying and selling of an asset to profit from price discrepancies
The negotiation process between buyers and sellers
The government's control over interest rates
#18
What is the role of the Securities and Exchange Commission (SEC) in financial markets?
To regulate and oversee the cryptocurrency market
To ensure fair and transparent operation of securities markets
To control interest rates in the banking sector
To set prices in the commodity market