Title: QUIZ: Understanding Capital Markets -- Financial Capability
Course: Kelly's Copy-Export Course > Section: Understanding Capital Markets -- Financial Capability

Q: Capital markets bring buyers and sellers together to
- sell goods and services at extremely discounted rates.
- trade stocks, bonds, currencies and other financial assets.
- barter products for stocks, bonds, and other financial assets.
- buy exclusive goods and services unavailable elsewhere.
A: trade stocks, bonds, currencies and other financial assets.

Q: When John had an idea for a business, he began the process of making that idea a reality by
- saving his money.
- investing his money.
- borrowing money.
- charging higher prices for his product.
A: saving his money.

Q: The risk to an investor who buys stock is that the
- company may expand.
- price of the stock may increase.
- price of the stock may decrease.
- business is unable to payback your loan.
A: price of the stock may decrease.

Q: A bond is a
- contract that gives the investor the right to trade a specific asset before a certain date.
- loan made by investors to a company or government.
- share in the ownership of a company.
- loan made to consumers.
A: loan made by investors to a company or government.

Q: Without capital markets, entrepreneurs would need to _____________ to expand.
- personally save enough money
- hire a consulting firm to seek donations from the public
- exchange partial ownership in their company for money
- offer a contract to investors allowing them to buy stock before a certain date
A: personally save enough money

Q: Investors earn money on bonds when the
- bond issuer makes an interest payment.
- price of the stock goes up.
- company sells stocks.
- company pays a dividend. That is correct.
A: bond issuer makes an interest payment.