Important Terms Related to Capital Markets

1.

Markets in which derivatives are traded, are classified as which of the following?

assets backed market

cash flow backed markets

mortgage backed markets

derivative securities markets

2.

Which of the following is the situation in which large portion of majority is borrowed from broker of investor?

future investment

forward investment

leveraged investment

non-leveraged investment

3.

Which of the following contracts involves future exchange of assets at a specified price?

future contract

forward contract

Present contract

Spot contract

4.

Which of the following units guarantees that all buying and selling will be made by traders?

clearing house

trading house

guarantee house

professional house

5.

Which of the following is an example of derivative securities?

return backed security

cash flow backed security

interest backed security

mortgage backed security