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6. Socially responsible investing (SRI) is an investment approach in which investors move beyond purely financial issues to also consider ESG factors when making investment decisions. What are ESG factors?

  • Emerging, short-term, and generational factors
  • Economic, social, and general business factors
  • Environmental, social, and governance factors
  • Environmental, socioeconomic, and governmental factors

7. Which of the following is a capital market instrument?

  • Bank overdraft provided to a small US corporate borrower
  • 1-month US Treasury bill
  • 10-year US Treasury note
  • 6-month commercial paper (CP) issued by a US corporation

8. Which of the following statements is true?

  • Governments raise funds by selling commercial paper (CP) or certificates of deposit (CDs).
  • Nonfinancial corporate bond issuance is less than that of the government sector.
  • Most FX and bond trading is conducted on exchanges.
  • Emerging markets focus more on equity financing than debt financing.