Part I. MULTIPLE CHOICE. Read each statement carefully and select the LETTER of your best answer.

1. It is a term that refers to payments received or payments or deposits made.
A. cash flow
B. equity market
C. fair market value
D. stock market
Other:


2. It is considered one of the most important factors that have significant effect in the economic status of the country and plays an important role in the economic development. 
A. Bonds
B. investment
C. interest
D. stock
Other:


3. What form of equity financing or raising money by allowing investors to be part owners of the company? *
A. Bond
B. cash flow
C. equity market
D. stocks


4. Which of the following is true about Bonds? *
A. Interest rate risk, Inflation risk
B. Market risk, business risk
C. Higher return
D. Shareholders get the right to vote in the company
Other:


5. It is a share in the ownership of a company. *
A. Amount
B. bonds
C. investments
D. stocks


6. It is where mostly stocks trading happens. 
A. bond market
B. equity market
C. fair market value
D. stock market


7. What form of debt financing or raising money by borrowing from investors? *
A. bonds
B. cash flow
C. equity market
D. stocks


8. Which of the following is not true about stocks and bonds? *
A. The level of risk in stocks is more risk while in the bonds it is less risk.
B. In stock, it has higher return and in bonds lower return.
C. The major risk associated in stocks and bonds is that market risk, business risk and interest rate risk inflation risk.
D. Can be appropriate if the investment is for a short term and not for retirees because of the fixed income



9. It is where usually bonds are traded. *
A. bond market
B. equity market
C. fixed-income market
D. stock market



10. What do you call a periodic interest payment that the bond holder receives during the time between purchase date and maturity date? *
A. coupon
B. dividend
C. focal date
D. stock yield ratio ​