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NCFM Capital Market Money and Capital Markets — practice questions

Explore 30 free Money and Capital Markets questions in NCFM Capital Market Finance. Open each question or exercise to read its content, reference answers and available explanation.

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Money and Capital Markets questions and exercises with answers

Showing questions 1–30 of 30.

Securities maturing in under a year with very low risk trade in the:Read the answer and worked solution →Money market securities trade easily without losing value. That property is called:Read the answer and worked solution →Who issues money market securities to meet short term needs?Read the answer and worked solution →Treasury bills are described as having a broad secondary market and being:Read the answer and worked solution →Treasury bills are auctioned how often?Read the answer and worked solution →Unlike Treasury bills, commercial paper lacks a robust:Read the answer and worked solution →An investment company pools T bills and CP, then sells shares of ownership. That fund is a:Read the answer and worked solution →A basket of securities that trades like a share on an exchange is an:Read the answer and worked solution →As market interest rates move, the secondary market prices of Treasury notes:Read the answer and worked solution →Who provides secondary market opportunities to individual investors?Read the answer and worked solution →An electronic market with direct deals and no broker in between is an:Read the answer and worked solution →The world's two largest stock exchanges by market capitalisation are NASDAQ and the:Read the answer and worked solution →The market where brand new securities are sold is called the:Read the answer and worked solution →The market where already issued securities change hands is the:Read the answer and worked solution →A firm offering shares to the public for the very first time is doing an:Read the answer and worked solution →A private company going public usually gets help from an investment:Read the answer and worked solution →Costs of running an IPO typically run to what share of its value?Read the answer and worked solution →As of the end of 2020, the largest successful IPO belonged to:Read the answer and worked solution →Who typically buys the shares first in an IPO?Read the answer and worked solution →Research cited says IPOs have historically underperformed the market by about:Read the answer and worked solution →A shell company raising money before it has a business to buy is a:Read the answer and worked solution →Compared with a normal IPO filing, a SPAC filing with the regulator is:Read the answer and worked solution →Catch the money market itemsRead the answer and worked solution →Pop the money market traitsRead the answer and worked solution →Run the market gatesRead the answer and worked solution →Slice the market wordsRead the answer and worked solution →New issue or resaleRead the answer and worked solution →Sort the market ideasRead the answer and worked solution →Type the numberRead the answer and worked solution →Financial markets bingoRead the answer and worked solution →

Worked practice questions

Securities maturing in under a year with very low risk trade in the:

  1. Money market
  2. Model market
  3. Motor market
  4. Mineral market
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Correct answer: A. Money market

1. The maturities are very short. 2. Default is rare on these instruments. 3. They trade in the money market. _Source: OpenStax Principles of Finance, Chapter 12, US Financial Markets._

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Money market securities trade easily without losing value. That property is called:

  1. Locality
  2. Liquidity
  3. Longevity
  4. Legality
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Correct answer: B. Liquidity

1. A holder can sell quickly. 2. The price barely moves on sale. 3. That property is liquidity. _Source: OpenStax Principles of Finance, Chapter 12, US Financial Markets._

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Who issues money market securities to meet short term needs?

  1. Banks and firms
  2. Bakers and farmers
  3. Builders and fitters
  4. Barbers and tailors
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Correct answer: A. Banks and firms

1. The issuers need to borrow briefly. 2. Governments and corporations do too. 3. So banks and firms issue them. _Source: OpenStax Principles of Finance, Chapter 12, US Financial Markets._

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