Wednesday, October 8, 2014

Ch 11 Exam Review Questions


1.  Explain the role and importance of financial intermediaries in an economic system and their involvement in investing.

·         Mutual Funds
·         Financial Assets
·         Diversification
·         Portfolios
·         Risk and Liquidity






2.  Compare and contrast the structure of bonds and money markets and the role each play in the financial system.

·         Coupon Rate
·         Maturity
·         Par Value
·         Yield
·         Types of bonds
·         Standard & Poor
·         Securities and Exchange Commission
·         Types of markets


3.  How is stock performance measured? What information can indexes give perspective investors?

·         Risks
·         Brokers
·         Brokerage firms
·         Stock exchanges
·         Bull and Bear
·         Dow Jones
·         S&P 500


4.  Analyze the events of the Great Crash of 1929.

·         Early 1920’s stock market
·         Speculation
·         Wealth distribution
·         Surplus of goods
·         Buying on the margin
·         Repayment of loans