FINANCE | COMPLETE STUDY GUIDE &
PRACTICE QUESTIONS
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Updated 2026 Questions and Answers
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,3 types of financial insturments stock, bond, derivatives
stocks certificates that represent ownership interest
bond loans sold to raise capital; provide a fixed income stream through interest
payments and the return of principal maturity; recorded under liabilities on
balance sheet
derivatives contracts whose value is derived from some other entity (usually an asset of
some kind); used to hedge against or speculate on risk
6 types of financial markets public, private
primary, secondary
dealer, auction
financial markets definition where buyers and sellers can trade financial assets
4 types of financial institutions depositary, investment, insurance, pension fund
,7 economic indicators GDP, CPI, PPI, consumer spending, unemployment rate, yield curve, interest
rate
GDP acronym Gross Domestic Product (acronym)
GDP definition (definition) value of goods and services produced in an economy
CPI acroynm Consumer Price Index (acronym)
CPI definition (definition) cost of living changes over time; economic indicator that measures
changes in the price level of a market portfolio
PPI acronym producer price index (acronym)
PPI definition (definition) average change over time in selling prices received by domestic
producers for their output
, 2 factors in inflation CPI and PPI
consumer spending economic indicators based on total consumer spending
yield curve predictions economic indicator that predicts the direction of interest rates and economic
expansion or contraction
accounting systematic recording, reporting, and analysis of financial transactions
accounting outputs balance sheets, income statements, cash flow statements
finance management of assets and liabilities, and planning for future growth and stability
finance outputs investment portfolios, financial strategies, budgets