Page U and V

Question 1

sell previously owned stocks and bonds; sell newly issued stocks and bonds; bond markets; NYSE and NASDAQ; stock markets

Answer 1

financial markets

Question 1

handle mergers and takeovers; provide advice, expertise, and salespeople; provide assistance in buying and selling financial assets; sell previously owned stocks and bonds; sell newly issued stocks and bonds; investment banks

Answer 1

securities firms

Question 2

market in which assets with a maturity of more than one year are bought and sold

Answer 2

capital market

Question 3

market in which assets with a maturity of less than one year are bought and sold

Answer 3

money market

Question 4

market of declining prices

Answer 4

bear market

Question 5

market that transfers existing assets from one saver to another

Answer 5

secondary financial market

Question 6

market that sells newly issued financial assets for businesses or for investment banks

Answer 6

primary financial market

Question 7

market of rising prices

Answer 7

bull market

Question 8

mature in less than one year; include negotiable CDs, commercial paper, and U.S Treasury bills; are more liquid

Answer 8

money market assets

Question 9

include stocks, bonds, and mortgages; have no maturity date or mature in more than one year; offer a higher return on investment

Answer 9

capital market assets

Question 10

can be sold in secondary market before maturity

Answer 10

negotiable CDs

Question 11

provides partial ownership of a company

Answer 11

stock

Question 12

periodic payment made to stockholders

Answer 12

dividend

Question 13

large corporation’s short-term promissory note

Answer 13

commercial paper

Question 14

government IOUs that mature in less than one year

Answer 14

U.S Treasury bills

Question 15

an increase in the value of stock

Answer 15

capital gain

Question 16

less expensive stock; stock that includes the right to vote at stockholders’ meetings

Answer 16

common stock

Question 17

less risky stock; stock that pays a fixed dividend rate

Answer 17

preferred stock

Question 18

loans secured by real estate

Answer 18

mortgage

Question 19

investment in diversified stocks through one entity

Answer 19

mutual funds

Question 20

promissory notes issued by churches, government entities, or corporations

Answer 20

bonds

Question 21

One lays up treasures in Heaven by demonstrating love for ____ and others; living in _____________ and ______________; serving _________ with pure motives

Answer 21

God; righteousness, holiness; God