Financial Markets (Basics)
What are financial markets?
Places where buyers and sellers trade financial assets.
Where are company shares bought and sold?
In the stock market.
Which market trades currencies?
Foreign exchange (FX) market.
What is one risk of financial markets?
Financial loss.
The stock market is ___ than the bond market.
More active / larger / riskier (any correct comparative)
Name two assets traded in financial markets.
Shares, bonds, currencies, commodities, derivatives
What does IPO stand for?
Initial Public Offering.
Which market trades oil and gold?
Commodity market.
What can price fluctuations cause?
Losses or instability.
Choose the correct form:
“The derivatives market is the ___ complex market.”
Most complex
Why are financial markets important for the economy?
They raise capital, transfer risk, and promote efficiency.
What happens when investors buy bonds?
They lend money to an organization.
What are derivatives based on?
Underlying assets like shares or commodities.
Why are markets regulated?
To reduce risk and instability.
Make a comparative sentence using safe.
The bond market is safer than the stock market.
Who benefits from financial markets?
Businesses, governments, and investors.
Who can issue bonds?
Companies or governments.
Which market is important for international trade?
Foreign exchange market
What does speculation mean?
Buying assets to profit from price changes.
Make a superlative sentence about risk.
The derivatives market is the riskiest.
What is financial literacy?
Understanding how financial systems and markets work
Which market involves paying interest to investors?
The bond market
Which market is the most complex?
Derivatives market.
Name one way investors manage risk.
Using derivatives
Correct the sentence:
“Commodity markets are more volatile then bond markets.”
than (not then)