Financial Systems and Society MCQs

Financial Systems and Society MCQs

Try to answer these 20 Financial Systems and Society MCQs and check your understanding of the Financial Systems and Society subject.
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1: A best efforts contractual agreement that the underwriter has guaranteed the price for the securities but markets and sells the securities on behalf of the company for a commission.

A.   True

B.   False

2: Bubble term used by economists to describe a short-lasting deviation of the price of some assets from their fundamental value (e.g., housing bubble)?

A.   True

B.   False

3: _______Sometimes called brokerage houses—firms that act on behalf of investors in buying and selling of securities?

A.   Financial corporations

B.   Financial bodies

C.   Financial entity

D.   Financial Firms

4: _____Term used to refer to innovations in the financial and technology crossover space and typically refers to companies or services that use technology to provide financial services to businesses or consumers?

A.   Fintech

B.   Financial technology

C.   New tech for financial services

D.   Fintech solutions

5: When the underwriter purchases all the issued securities at a negotiated price and then resells the shares to the public is known as ?

A.   Firm Commitment Agreement

B.   Inventory risk

C.   Tech for financial services

D.   None of these

6: The Global Financial System is a set of formal and informal agreements that are intended to promote economic stability and access to money for investment and _____venture financing.

A.   New

B.   Older

C.   Review

D.   Finish

7: An 18-month economic downturn from 2007 to 2009 that the IMF concluded was the most severe recession since the Great Depression in the 1930s.

A.   2007-2019

B.   1227-1963

C.   2007-2009

D.   2009-2020

8: Institutions created after _______by one or more nations to facilitate development and ensure financial stability?

A.   World War II

B.   World War I

C.   Both a and b

D.   None of these

9: In ______the context of investing, borrowing money to invest with the objective of producing a higher level of return.?

A.   Leveraging.

B.   Powering.

C.   Consumption

D.   Cantilever

10: An information failure where 3 parties to a transaction have greater material knowledge than the other party.?

A.   True

B.   False

11: _________has Controversial financing method that requires a borrower to pay a loan back with interest in one lump sum on her next payday?

A.   Payday Loans

B.   Shylocking

C.   Overcharging

D.   Non for these

12: Post-Effective Period is the time after the SEC declares the _______statement effective, allowing for the sales of securities through the company’s underwriters.

A.   Registration

B.   Readjustment

C.   Matriculation

D.   None of these

13: The _____ period of time between when the company decides to go public and when the registration statement is publicly filed with?

A.   Pre Filing

B.   Quiet Period

C.   Subdued period

D.   Both a and b

14: A Private company that has only sold securities to early investors and they are offered on the public markets.?

A.   True

B.   False

15: A document that closes financial details about the company, such as risk factors, a business plan, and/or pending or threatened litigation is known as a prospectus ?

A.   True

B.   False

16: Road Show occurs during the waiting period when the company’s executives and underwriters travel around the United States to present the company to _____and institutional investors?

A.   Investment banks

B.   Disburses

C.   Distrusts

D.   None of these

17: ________Mortgages that allow borrowers to have initial lower payments that increased over time?

A.   Non-preferred

B.   Lot

C.   Suboptimal

D.   Subprime

18: A Tombstone ad containing basic information about the offering: the amount and type of______, the underwriter, and the price?

A.   Security

B.   Surety

C.   Secure

D.   Consternation

19: Usually an investment bank advises the company throughout the____process, helping the company determine its value and its initial share price known as Underwriter?

A.   IPO

B.   SEC

C.   CEO

D.   None of these

20: U.S. Securities and Exchange Commission (SEC) is an independent agency consisting of ____commissioners appointed by the president of the United States.?

A.   Five

B.   Four

C.   Fourteen

D.   Fifteen

21: The waiting Period time between the public filing of the Registration Statement with the _____and the effective date of the IPO?

A.   SEC

B.   CEO

C.   Both a and b

D.   None of these

22: ____and global firms that make the financial markets function by generating revenue primarily using financial markets rather than labor is known as Wall Street?

A.   Collections

B.   Individuals

C.   Generals

D.   Particulars

23: Today's futures markets are dominated by trading in _______ contracts.

A.   Metals

B.   Agriculture

C.   Commodity

D.   Financial