6. Which financial institution is responsible for insuring deposits in commercial banks?
a. Federal Reserve System (Fed)
b. Securities and Exchange Commission (SEC)
c. Federal Deposit Insurance Corporation (FDIC)
d. Office of the Comptroller of the Currency (OCC)
7. What is the function of a stock exchange?
a. Facilitating the buying and selling of stocks and other securities
b. Providing loans to individuals and businesses
c. Regulating insurance companies
d. Managing pension funds
8. What does the term “liquidity” refer to in the financial sector?
a. The ability to convert assets into cash quickly without significant loss
b. The amount of money saved in a bank account
c. The profitability of an investment
d. The risk associated with a financial transaction
9. What is the purpose of diversification in investment portfolios?
a. Maximizing returns by concentrating investments in a single asset
b. Minimizing risk by spreading investments across different assets
c. Generating passive income through rental properties
d. Securing loans with collateral assets
10. Which of the following is NOT a type of financial market?
a. Money market
b. Insurance market
c. Capital market
d. Foreign exchange market