Capital Market Specialist Questions and Answers Pdf - 1

Question: 1

What are derivatives?

Derivatives are financial contracts whose value is derived from an underlying asset (stocks, bonds, commodities, currencies).

Question: 2

What are blue-chip stocks?

Shares of large, financially stable, well-established companies with consistent performance.

Question: 3

What is risk-return tradeoff?

Higher potential returns generally come with higher risk.

Question: 4

What are clearing houses?

Entities that ensure trade settlement and reduce counterparty risk.

Question: 5

What factors affect bond prices?

• Interest rates

• Inflation expectations

• Credit rating

• Market liquidity

• Economic outlook