FINANCIAL MARKETS AND INSTITUTIONS
ACTUAL TEST QUESTIONS AND SOLUTIONS
COMPREHENSIVE REVIEW PACKAGE
●● How long did it take for the Dow to recover after the 2008 crisis?
Answer: It took 6 years (from July 2007 to March 2013).
●● What does DJIA stand for?
Answer: Dow Jones Industrial Average.
●● What was the percentage drop in the stock market during the COVID
pandemic in February-March 2020?
Answer: 32.5% drop in a month.
●● What factors contributed to the economic uncertainty during the
COVID pandemic?
Answer: Tighter monetary policy, invasion of Ukraine, rising energy
prices, potential new COVID variants.
●● What is the Dow composed of?
Answer: 30 large publicly traded US companies, often referred to as
'Blue-chip' stocks.
, ●● Name two examples of companies included in the Dow.
Answer: Apple and Boeing.
●● What is the difference between the Dow and the S&P 500?
Answer: The Dow consists of 30 companies, while the S&P 500
includes 500 companies.
●● What is the Volcker Rule?
Answer: A regulation that limits risky activities by banks that take
deposits and are insured by the FDIC.
●● What does the Dodd-Frank Act aim to address?
Answer: It aims to prevent another financial crisis by implementing
regulations on financial institutions.
●● What is the goal of safety and soundness regulation in commercial
banking?
Answer: To protect depositors against the risk of commercial bank
failures.
●● What is the role of the Federal Deposit Insurance Corporation
(FDIC)?
Answer: It provides deposit insurance to depositors, guaranteeing up to
$250,000 per depositor per bank.
ACTUAL TEST QUESTIONS AND SOLUTIONS
COMPREHENSIVE REVIEW PACKAGE
●● How long did it take for the Dow to recover after the 2008 crisis?
Answer: It took 6 years (from July 2007 to March 2013).
●● What does DJIA stand for?
Answer: Dow Jones Industrial Average.
●● What was the percentage drop in the stock market during the COVID
pandemic in February-March 2020?
Answer: 32.5% drop in a month.
●● What factors contributed to the economic uncertainty during the
COVID pandemic?
Answer: Tighter monetary policy, invasion of Ukraine, rising energy
prices, potential new COVID variants.
●● What is the Dow composed of?
Answer: 30 large publicly traded US companies, often referred to as
'Blue-chip' stocks.
, ●● Name two examples of companies included in the Dow.
Answer: Apple and Boeing.
●● What is the difference between the Dow and the S&P 500?
Answer: The Dow consists of 30 companies, while the S&P 500
includes 500 companies.
●● What is the Volcker Rule?
Answer: A regulation that limits risky activities by banks that take
deposits and are insured by the FDIC.
●● What does the Dodd-Frank Act aim to address?
Answer: It aims to prevent another financial crisis by implementing
regulations on financial institutions.
●● What is the goal of safety and soundness regulation in commercial
banking?
Answer: To protect depositors against the risk of commercial bank
failures.
●● What is the role of the Federal Deposit Insurance Corporation
(FDIC)?
Answer: It provides deposit insurance to depositors, guaranteeing up to
$250,000 per depositor per bank.
