Question 1:
What is the primary market function of the stock exchange?
- A) To facilitate government regulation of the stock market.
- B) To provide a platform for buying and selling commodities.
- C) To enable initial public offerings (IPOs) and new issues of stocks.
- D) To set interest rates for bonds and notes.
Question 2:
What is the primary function of investment banks?
- A) To provide personal loans to individuals.
- B) To facilitate stock trading for retail investors.
- C) To raise capital for corporations through underwriting and advisory services.
- D) To manage mutual funds.
Question 3:
What is the formula to calculate the Price-to-Earnings (P/E) ratio?
- A) Market Value per Share / Earnings per Share
- B) Earnings per Share / Market Value per Share
- C) Dividends per Share / Market Value per Share
- D) Market Value per Share / Dividends per Share
Question 4:
Which financial instrument is typically considered the safest investment?
- A) Corporate bonds
- B) Stocks
- C) Treasury bills
- D) Commodities
Question 5:
Which of the following is a typical service provided by investment banks?
- A) Managing savings accounts for retail customers.
- B) Offering mortgage loans to homebuyers.
- C) Advising companies on mergers and acquisitions.
- D) Providing personal financial planning.
What is the primary market function of the stock exchange?
- A) To facilitate government regulation of the stock market.
- B) To provide a platform for buying and selling commodities.
- C) To enable initial public offerings (IPOs) and new issues of stocks.
- D) To set interest rates for bonds and notes.
Question 2:
What is the primary function of investment banks?
- A) To provide personal loans to individuals.
- B) To facilitate stock trading for retail investors.
- C) To raise capital for corporations through underwriting and advisory services.
- D) To manage mutual funds.
Question 3:
What is the formula to calculate the Price-to-Earnings (P/E) ratio?
- A) Market Value per Share / Earnings per Share
- B) Earnings per Share / Market Value per Share
- C) Dividends per Share / Market Value per Share
- D) Market Value per Share / Dividends per Share
Question 4:
Which financial instrument is typically considered the safest investment?
- A) Corporate bonds
- B) Stocks
- C) Treasury bills
- D) Commodities
Question 5:
Which of the following is a typical service provided by investment banks?
- A) Managing savings accounts for retail customers.
- B) Offering mortgage loans to homebuyers.
- C) Advising companies on mergers and acquisitions.
- D) Providing personal financial planning.