Test Your Financial Market Knowledge

Test Your Financial Market Knowledge

This quiz will test your understanding of financial markets. Answer the following 12 questions to see how much you know!

published on May 04
1/12

What is the main purpose of financial markets?

What is the main purpose of financial markets?
To sell goods and services
To facilitate the buying and selling of financial assets
To regulate government spending
To conduct market research
2/12

Which of the following is a type of financial market?

Which of the following is a type of financial market?
Supermarket
Flea market
Black market
Stock market
3/12

What is a stock exchange?

A marketplace where securities are bought and sold
A place to exchange foreign currencies
A bartering system for goods and services
A political assembly
4/12

What is a bond?

A debt security issued by a company or government
A fictional character from a popular TV show
A type of currency
A type of stock
5/12

What is the role of a broker in financial markets?

What is the role of a broker in financial markets?
To facilitate trades between buyers and sellers
To cook food for market participants
To write financial regulations
To design marketing campaigns
6/12

What is market liquidity?

The ability to buy or sell an asset without causing a significant change in its price
The total number of goods in a market
The level of government intervention in markets
The market's level of profitability
7/12

What is insider trading?

Trading of a security by someone with non-public, material information about it
Trading goods illegally on the black market
Making trades based on astrology predictions
Trading in secret underground markets
8/12

What is a bear market?

What is a bear market?
A market where only bears are allowed to trade
A market characterized by declining prices and pessimism
A market where animal products are sold
A type of market found in the wilderness
9/12

What is diversification in investing?

What is diversification in investing?
Spreading investments across different assets to reduce risk
Putting all your money into a single investment
Investing in only tech stocks
Investing in a single sector of the economy
10/12

What is a mutual fund?

What is a mutual fund?
An investment vehicle that pools money from multiple investors to buy a portfolio of securities
A fund for mutual activities like sports betting
A fund created by siblings
A fund that invests in only one company
11/12

What is the Dow Jones Industrial Average?

What is the Dow Jones Industrial Average?
An index that tracks the stock prices of 30 large, publicly-owned companies
A famous rapper
An economic theory
A popular dance move
12/12

What is a hedge fund?

An investment fund that pools money from wealthy individuals and institutions for more aggressive investment strategies
A fund for gardening enthusiasts
A fund for protecting hedges in gardens
A fund for betting on the outcome of sporting events