Check your knowledge with a financial quiz

Example questions from our financial quiz

Question 1

In a Capital Market investors and entrepreneurs work together to create increased business revenues

Question 3

IPOs are defined as

Question 5

The primary market is the offering of securities by the company to the public

Question 7

When share prices rise or fall who is affected

Question 9

Order the 5 Basic Steps of Privatization

Question 11

What two basic participants does the capital market attempt to bring together

Question 13

Securities bought and sold in the monetary market are in small denominations and are available to many individuals

Question 15

Complete this sentence below

Question 17

Governments throughout the world now recognize that domestic economic growth depends in large measure on moving enterprise capital into private hands

Question 19

The principal goal for government policymakers and regulators is to facilitate the development of existing resources

Question 21

Governments role in developing a free market economy can be described as one of facilitation

Question 23

Companies will avoid reaching out to the public and bringing them in as investors in their enterprises due to rigorous government regulation

Question 25

The governments role should primarily be to create statutes for the regulation of emerging stock exchanges

Question 27

There should be adequate training and educational programs for government personnel lawyers accountants judges and all others whose decisions affect the capital market

Question 29

Which organization plays an essential role in regulating interest rates the public float of currency and overall monetary policy

Question 31

When agency regulators are politically motivated the public is more confident in the capital market

Question 33

Without the five allied participants the system would not function efficiently

Question 35

Banks create new money by extending new loans or purchasing new securities on the primary market

Question 37

It is highly improbable that the savings of nonfinancial economic units will be matched by desired investment

Question 39

At the Bretton Woods Conference in 1944 which two organizations were established

Question 41

Which of these was relatively fixed during the Bretton Woods era

Question 43

Which of these processes aids globalization

Question 45

What is the consequence of the improvement in technology used in international financial transactions

Question 47

Which are examples of a new actor in international financial markets

Question 49

The deregulation of financial markets and the utilization of new technologies have made it easier for foreigners to purchase debt instruments offered on domestic financial markets

Question 51

Changes in international finance have created a number of challenges for all international financial actors

Question 53

Financial figures in real terms have been adjusted to factor out the effects of inflation

Question 2

An equity investor receives an economic return only through which of the following

Question 4

In many developing countries there is more capital being invested through microfinancing than through the stock market

Question 6

How does a company sell its shares to the public

Question 8

Governments decided to denationalize governmentowned businesses through a process usually called

Question 10

Which of the following are examples of principal investors in a capital market

Question 12

For a capital market to succeed there must be an active and substantial flow of equity and debt investment into business enterprises from investors and an active secondary market for the trading of those investment securities

Question 14

What factors are essential for a successful capital market

Question 16

An efficient capital market requires continual government understanding and analysis of market conditions

Question 18

Governments are under pressure to privatize in order to

Question 20

Resources that exist in many developing countries include

Question 22

Balancing must occur in two different ways

Question 24

The free market is not truly free because there are trade practices customs understandings and unwritten informal rules in the securities industry that govern daytoday business operations

Question 26

When a government is developing a capital market what is the first and most basic role

Question 28

When regulators are considering appropriate statutes and regulations they should be aware of Securities Registration Process Secondary Market and Enforcement Process

Question 30

What are the principal government institutions affecting the capital market

Question 32

Countries sometimes add additional money to their financial system

Question 34

What is the responsibility of the credit rating services

Question 36

Key Interest rate

Question 38

Which of the following are considered to be in the government sector

Question 40

The Bretton Woods period ended in 1971 when the US government formally broke the link between the US dollar and gold

Question 42

The Second Amendment to the IMF Articles of Agreement allowed for the development of a relatively freer and more internationalized monetary and financial system

Question 44

Technology makes it easier and cheaper for those with funds to invest to find those with an interest in raising capital

Question 46

What is deregulation

Question 48

One consequence of the increased use of derivatives has been to strengthen the links between different financial markets and different financial actors

Question 50

Because potential lenders and investors now have more options on where to place their funds they can afford to be more selective in their investment choices

Question 52

There have been a number of new initiatives to deal with the governance challenges that exist in international finance