International financial News

What is the main role of a central bank?

Maintaining price stability

What tool does the central bank use to control inflation?

The key rate

What is the refinancing rate?

Rate at which banks borrow from the central bank

Which indicator is mainly targeted by the ECB in its monetary policy?​

A)   Inflation rate​

What is the main objective of the ECB's mandate

Price stability

What is the major difference between the policies of the Fed and the ECB?

The Fed has a dual mandate (stability and employment), the ECB a single objective​ (stability)

What has been the impact of the COVID-19 crisis on central banks' balance sheets?

Significant expansion of balance sheets through asset purchases​

What is the main objective of open market operations conducted by a central bank?​

Influence short-term interest rates and control the money supply.

What does forward guidance mean in monetary policy?

Advance communication of the central bank’s future intentions

What were the effects of the “desegmentation” of the financial system and the growth of securities markets in the 1980s?​

Reforms to enable an inclusive single market

What were the consequences of integrating the French financial system into the European Economic and Monetary Union (EMU) in 1999?​

The elimination of exchange rate risk within the euro area​

b) Interest rate convergence in the euro area​

(c) Increased liquidity through the creation of a European capital market

What was the outcome of the 2000 merger between the Amsterdam, Brussels, and Paris stock exchanges?​

Creation of Euronext

Which of the following is not considered a category of financial market investors?​

rating agencies

What is the primary role of brokerage firms or brokers in financial markets?​

d) Regulating financial transactions to prevent         insider trading​managing client investments and facilitating trades.

Which of the  following regulators is responsible for overseeing securities markets in the United States?​

The Securities and Exchange Commission (SEC)

Which financial markets are used for long-term debt instruments and equities?​

Capital markets

Why must financial markets be strictly regulated and monitored?​

Because of the magnitude of the capital invested         and its influence on the real economy​

What role has the development of financial markets played in the economy?​

Enabling unprecedented economic development by collecting and redistributing capital   globally​

What is the main role of primary equity markets?​

Issuing new securities to the public​

What is the main role of secondary equity markets?​

Provide a platform to trade existing securities​

Which two types of markets handle stocks?

Primary and secondary markets​

What does "Compartment A" represent on EURONEXT?

Large listed companies with a market capitalisation of more than €1 billion​

What type of markets are EURONEXT's Compartments B and C designed for?​

 Medium-sized enterprises​

 

Which stock index is mostly made up of tech companies?​

Nasdaq Composite Index

Which of the following is not a function of stock market indices

Measuring inflation​

What paradox characterized  the financial markets during the COVID-19 pandemic?​

the rebound of the markets despite the economic crisis​

Why do very low interest rates support stock markets?​

Very low interest rates make borrowing cheaper, encouraging investment and spending, which can boost corporate profits and drive stock prices higher.

They increased the valuation of shares​

-              Who are the main investors in the bond markets?

o   Individuals

o   Companies

o   Banks

-              Which of the following instruments belong to the money markets?

o   Stocks

-              What type of return is typically associated with bonds?

o   Fixed, known in advance

-              When I buy a bond, I become

o   Issuer’s creditor

-              Which statement is true about the duration of a stock ?

o   It does not have a fixed duration, it exists as long as the company exists

-              What is the typical relationship between bond prices and interest rate?

o   Bond prices and interest rates move in opposite directions

-              What is the key difference between nominal and real interest rates?

o   Real interest rates are adjusted for inflations, while nominal interest rates are not

-              What are “green bonds” in the bond market?

Bonds issued by environmentally friendly companies

What is Forex ?

A currency market​

The spot rate corresponds to

The exchange rate for immediate settlement (current exchange rate)​

What happens when the euro goes from 1.20 to 1.10 USD?

The euro depreciates against the dollar, meaning each euro is worth fewer dollars.

Which actor intervenes to stabilize a currency?​

A central bank​

High interest rates in a country tend to

Attract capital and strengthen the currency​

What is the main objective of a company  hedging against currency risk?​

Protect its profit margin from exchange-rate fluctuations​

In the Bretton Woods system

The US dollar was pegged to gold and other currencies were pegged to the dollar​

A forward contract allows you to

Lock in an exchange rate in advance

High inflation in a country tends to

weaken the currency

What is a floating exchange rate

A rate that moves freely according to supply and demand​

Which of the following is the definition of a commodity?​

An unprocessed natural resource used as an input ​

Which contract allows you to buy a commodity immediately, at today’s price 

Spot contract

What is the main purpose of a commodity futures contract?​

To hedge against price fluctuations by agreeing to buy or sell a commodity at a future date.

What is the main purpose of a commodity futures contract?​

Investment Fund

Why are commodity markets particularly volatile?

They depend on factors such as geopolitics or climate​

What does "hedging" mean in commodities

Protecting against price fluctuations ​

What is the main difference between a futures contract and a forward contract?​

Standardization of the contract​

What event caused the historic collapse of the price of a barrel of WTI in April 2020?

The COVID-19 pandemic

What was the direct effect of the invasion of Ukraine on oil

 Sharp rise in oil prices​

Which country consumes the most energy?​

China

Who is the world’s largest oil producer?​

USA

Is sustainable finance included among the UN’s 17 Sustainable Development Goals (SDGs)?​

No

What are carbon credits used for in environmental policy?

Serve as a tradable mechanism for companies to offset their carbon emissions.

What are green bonds primarily used for?​
​

1. To finance projects focused on climate action and environmental protection.​

Which sector receives the largest share of green bond financing?​

Energy

What is the main objective of the carbon market?​

Reducing CO₂ emissions at the lowest cost​

Which financial instrument supports the energy transition?

Green bonds

Which sector is covered by the EU ETS?​

Power generation and heavy industry

What is the main criticism of green finance?​

greenwashing

What role does finance play in sustainable development?​

Directing investments towards projects with an environmental and social impact​