金融英语单选题练习

金融英语单选题练习

1.Whatistheprimarypurposeofaderivativesmarket?

A.Toprovideacentralizedlocationfortradingstocksandbonds.

B.Tofacilitatethebuyingandsellingoffinancialinstrumentsatafuturedate.

C.Toprovideameansforindividualstoopensavingsaccounts.

D.Toregulateandenforcefinancialsecuritieslaws.

Answer:B

2.Whatisthefunctionofacreditratingagency?

A.Toprovideloanstoindividualsandbusinesses.

B.Toregulatetheactivitiesofbanksandfinancialinstitutions.

C.Toassessthecreditworthinessofindividualsandbusinesses.

D.Toprovideinsuranceforindividualsandbusinesses.

Answer:C

3.Whatisliquidityinthecontextoffinancialmarkets?

A.Theabilitytoconvertinvestmentsintocashwithoutlossofvalue.

B.Thetotalamountofmoneyincirculationinaneconomy.

C.Therateatwhichthevalueofafinancialinstrumentchanges.

D.Thedifferencebetweenthebuyandsellpricesofafinancialinstrument.

Answer:A

4.Whatisthepurposeofaninitialpublicoffering(IPO)?

A.Toallowacompanytoraisecapitalbysellingitssharestothepublicforthefirsttime.

B.Toprovidealoantoacompanyforitsexpansionplans.

C.Toallowshareholderstoselltheirsharesinacompany.

D.Toregulatetheactivitiesofacompanyandensurecompliancewithfinancialregulations.

Answer:A

5.Whatistheroleofastockexchange?

A.Toprovideloanstoindividualsandbusinesses.

B.Toregulatetheactivitiesofbanksandfinancialinstitutions.

C.Tofacilitatethebuyingandsellingofstocksandothersecurities.

D.Toprovideinsuranceforindividualsandbusinesses.

Answer:C

6.Whatisthedifferencebetweenabullmarketandabearmarket?

A.Abullmarketischaracterizedbyrisingprices,whileabearmarketischaracterizedbyfallingprices.

B.Abullmarketischaracterizedbyfallingprices,whileabearmarketischaracterizedbyrisingprices.

C.Abullmarketisamarketwithhighliquidity,whileabearmarketisamarketwithlowliquidity.

D.Abullmarketisamarketwhereinvestorsarepessimistic,whileabearmarketisamarketwhereinvestorsareoptimistic.

Answer:A

7.Whatarethetwomaintypesofbondmarkets?

A.Primarymarketandsecondarymarket.

B.Equitymarketandderivativesmarket.

C.Moneymarketandcapitalmarket.

D.Stockmarketandcommoditymarket.

Answer:C

8.WhatistheroleoftheFederalReserveintheUnitedStates?

A.Toregulateandsupervisebanksandfinancialinstitutions.

B.Toprovideloanstoindividualsandbusinesses.

C.TomanagethemonetarypolicyoftheUnitedStates.

D.Toprovideinsuranceforindividualsandbusinesses.

Answer:C

9.Whatisthepurposeofdiversificationininvestment?

A.Toconcentrateinvestmentsinasingleassetorsector.

B.Tominimizetheriskbyspreadinginvestmentsacrossdifferentassetsorsectors.

C.Tomaximizereturnsbyinvestinginhigh-riskassets.

D.Toprovideinsuranceagainstpotentiallosses.

Answer:B

10.Whatisthedifferencebetweenafixed-ratemortgageandanadjustable-ratemortgage?

A.Afixed-ratemortgagehasaconstantinterestratethroughouttheterm,whileanadjustable-ratemortgagehasaninterestratethatcanchangeovertime.

B.Afixed-ratemortgageisonlyavailableforcommercialproperties,whileanadjustable-ratemortgageisonlyavailableforresidentialproperties.

C.