Chapter 1 - Introduction and Overview of
Financial Market Exam Question &
Answers 2025
financial markets - CORRECT ANSWERS ✔✔the arenas through
which funds flow; where fund users and savers meet.
primary markets - CORRECT ANSWERS ✔✔markets in which
corporations raise funds through new issues of securities
Primary, Secondary, Money, Capital, Foreign Exchange, Derivatives -
CORRECT ANSWERS ✔✔Types of Financial Markets (6)
initial public offerings
(IPOs) - CORRECT ANSWERS ✔✔The first public issue of
financial instruments by
a firm.
secondary market - CORRECT ANSWERS ✔✔A market that trades
financial instruments
once they are issued.
Investment Banks - CORRECT ANSWERS ✔✔Arrange Primary
Markets transaction
, Chapter 1 - Introduction and Overview of
Financial Market Exam Question &
Answers 2025
Derivative Security - CORRECT ANSWERS ✔✔A financial security
whose payoffs are linked
to other, previously
issued securities.
Money Market - CORRECT ANSWERS ✔✔Markets that trade debt
securities or instruments
with maturities of one
year or less.
over-the-counter (OTC)
markets - CORRECT ANSWERS ✔✔Markets that do not
operate in a specific fixed
location—rather, transactions
occur via telephones,
wire transfers,
and computer trading.
Capital Market - CORRECT ANSWERS ✔✔Markets that trade
debt (bonds) and equity
Financial Market Exam Question &
Answers 2025
financial markets - CORRECT ANSWERS ✔✔the arenas through
which funds flow; where fund users and savers meet.
primary markets - CORRECT ANSWERS ✔✔markets in which
corporations raise funds through new issues of securities
Primary, Secondary, Money, Capital, Foreign Exchange, Derivatives -
CORRECT ANSWERS ✔✔Types of Financial Markets (6)
initial public offerings
(IPOs) - CORRECT ANSWERS ✔✔The first public issue of
financial instruments by
a firm.
secondary market - CORRECT ANSWERS ✔✔A market that trades
financial instruments
once they are issued.
Investment Banks - CORRECT ANSWERS ✔✔Arrange Primary
Markets transaction
, Chapter 1 - Introduction and Overview of
Financial Market Exam Question &
Answers 2025
Derivative Security - CORRECT ANSWERS ✔✔A financial security
whose payoffs are linked
to other, previously
issued securities.
Money Market - CORRECT ANSWERS ✔✔Markets that trade debt
securities or instruments
with maturities of one
year or less.
over-the-counter (OTC)
markets - CORRECT ANSWERS ✔✔Markets that do not
operate in a specific fixed
location—rather, transactions
occur via telephones,
wire transfers,
and computer trading.
Capital Market - CORRECT ANSWERS ✔✔Markets that trade
debt (bonds) and equity
