Lesson Worksheet: Stock Market Economics

In this worksheet, we will practice identifying stocks and bonds as components of the stock market and characterize the role of the stock market in a country’s economy.


Which of the following is not an essential function of the stock market in contemporary economies?

  • AProviding liquidity to securities
  • BRegulating the prices of securities
  • CProviding a stable and open market for transactions between savers and borrowers
  • DProviding rules and guarantees for the completion of transactions of securities
  • EDirecting savings to invest in legitimate channels


Which of the following indicators of the state of the national economy are regularly reported from the stock market?

  1. Volume of transactions of securities
  2. Projections of volatility in prices of securities
  3. Movement of prices of securities
  4. National debt
  • AI, II, and III
  • BI, II, III, and IV
  • CI and III
  • DI, III, and IV
  • EIII only

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