Building 1 - EverFi Marketplaces
Imagine you own a startup company. How might you benefit from participating in the financial market?
Both A and B are true.
Which of the following is NOT an example of a transaction?
Giving your friend a gift for their birthday.
The capital market is the market for...
Stocks and bonds
Which person is responsible for buying and selling investments for their clients?
A broker
What is a stock exchange?
A place where investors can buy and sell different investments.
Which of the following statements is TRUE?
A stock exchange is a place where investors can buy and sell different investments.
Which of the following statements about the impact of the financial market is TRUE?
All of the above
What is the global economy?
All the transactions that occur in connected markets across the economies of different countries.
Which of the following is NOT an example of a transaction?
An individual volunteering their time at a local charity.
How does a global economy impact you?
Both A and B (you can access G&S, & investments from markets around the world; which means you are connected to different markets around the world)
How does the financial market impact the economy?
Both A and C (the financial market helps the economy grow; which gives individuals, companies, and government access to money they need)
Most stock exchanges today use floor trading with human brokers.
False
The financial markets are a relatively new technological development created in the last 50 years.
False
The stock exchange scene has not changed much over time; floor trading and human brokers are still used at most stock exchanges.
False
Which of the following is NOT an example of a transaction?
Finding a $10 bill on the ground.
Why might individuals want to participate in the financial market?
Individuals can invest their money in the financial market to help them achieve their financial goals.
What does a broker do?
Makes investment trades for their clients
When a natural disaster happens, what usually happens to stock prices?
Stock prices go up in some industries and down in other industries
When there are events that are unfavorable to economic growth (such as a global recession) in the news, what usually happens to stock prices?
Stock prices in all industries go down
When there are events that promote economic growth in the news, what usually happens to stock prices?
Stock prices in all industries go up
Which financial market is the stock market a part of?
The capital market
Which of the following is NOT an example of a financial market?
The export market
Which of the following statements about the relationship between the financial market and the economy is TRUE?
The financial market helps the economy grow.
Which of the following statements about the importance of the financial market is TRUE?
The financial market is one of the most important markets for economic growth.
All of the transactions that occur in connected markets across the economies of different countries create...
The global economy
What is the place where investments are bought and sold called?
The stock exchange
Why might a broker look at world news and financial data?
To help them make recommendations to their clients on what investments to buy and sell.
Most stock exchanges today use electronic trading.
True
The financial market first started over 500 years ago with merchants trading debts.
True
The financial markets were created more than 500 years ago.
True