BUSAD 101 - Introduction to Business » Spring 2021 » Chapter 16 Quiz

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Question #1
The _____ involves the direct trading of exchange-listed stocks off the floor of the exchange (in the case of NYSE-listed stocks) or outside the network (in the case of NASDAQ-listed stocks).
A.   secondary market
B.   primary market
C.   American Stock Exchange
D.   fourth market
Question #2
_____ connect major brokerages and individual traders virtually using the Internet, so that trades can be made directly without going through an intermediary.
A.   Electronic communications networks
B.   Open market operations
C.   Nondepository financial institutions
D.   Traditional brick-and-mortar online transactions
Question #3
The ______ order is called instructs the broker to obtain the best possible price—the highest price when selling and the lowest price when buying.
A.   stock
B.   fast
C.   market
D.   limit
Question #4
Mortgage pass-through securities are relatively safe, even when loans are made to borrowers with poor credit ratings.
A.   FALSE
B.   TRUE
Question #5
Municipal bonds are bonds issued by the federal government.
A.   FALSE
B.   TRUE
Question #6
A town is considering putting in a toll road that will produce revenue for the town. To provide funding, the town will sell revenue bonds.
A.   TRUE
B.   FALSE
Question #7
Secured bonds are backed by a specific pledge of company assets.
A.   FALSE
B.   TRUE

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