Q. A market for existing financial securities that are currently traded between investors is called the____________ market
✅ Correct Answer: (C)
Secondary.
Financial Services MCQs and Notes
Q. When one investment company manages a group of mutual funds, it is called a(n):.
✅ Correct Answer: (A)
Family funds
Q. The value of the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding is called the:.
✅ Correct Answer: (D)
Net asset value.
Q. A mutual fund in which shares are issued only when the fund is organized is called a ________fund.
✅ Correct Answer: (A)
Closed-end.
Q. Money market securities ____________.
✅ Correct Answer: (D)
All of the above
Q. A fixed-income security pays ____________.
✅ Correct Answer: (B)
A fixed level of income for the life of the security.
Q. Although derivatives can be used as speculative instruments, businesses most often use them to _________.
✅ Correct Answer: (D)
Hedge.
Q. Commercial banks differ from other businesses in that both their assets and their liabilities are mostly ________.
✅ Correct Answer: (B)
Financial.
Q. The inflation free instrument is........
✅ Correct Answer: (B)
Index-linked guilt bond
Q. Type of debt instrument which permit investors to switch between two types of securities.
✅ Correct Answer: (C)
Flip-Flop notes