Question 35 Since their introduction in 1913, mutual funds have become one of the most important forms of financial intermediation in the United States. True O False
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- Question 19 Which of the following is not a financial intermediary? a pension fund an insurance company an organized exchange, e.g. NYSE a commercial bankQuestion 6 The financial markets facilitate the movement of funds from Select one alternative: O Central banks to individual depositors O Surplus agents to deficit agents O Stock markets to shareholders O Insurance companies to Lloyds of Londonq11 Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment q12 Insurance companies and brokerage houses are examples of which of the following. a. Financial instruments b. Financial institutions c. Medium of exchange d. Financial markets
- Financial Markets and Institutions, 8e (Mishkin) Chapter 2 Overview of the Financial System 2.1 Multiple Choice 1) Every financial market performs the following function: A) It determines the level of interest rates. B) It allows common stock to be traded. C) It allows loans to be made. D) It channels funds from lenders-savers to borrowers-spenders. Topic: Chapter 2.1 Function of Financial Markets Question Status: Previous Edition 2) Financial markets have the basic function of A) bringing together people with funds to lend and people who want to borrow funds. B) assuring that the swings in the business cycle are less pronounced. C) assuring that governments need never resort to printing money. D) both A and B of the above. E) both B and C of the above. Answer: A Topic: Chapter 2.1 Function of Financial Markets Question Status: Previous Edition 3) Which of the following can be described as involving direct finance? A) A corporation’s stock is traded in an over-the-counter…Question 3 What lessons can the fund management industry learn from the Woodford investment scandal?Question 19 Bank assets tend to have maturities and liquidity than/as bank liabilities. O longer; greater O shorter; lower longer; lower shorter; greater
- Kf3 What type of assets is closest to REITs? Government bonds Credit Default Swaps Corporate bonds Convertible bondsQuestion 22 Which of the following is generally a long term source of finance? A Corporate Bonds B Debt factoring C Trade Credit D OverdraftQuestion 1Assess five roles of Government in promoting the development of the Financial Market in Ghana.
- Testbank, Question 25 Common types of short-term finance include: O paid taxes and trade credit. accrued wages and floor-plan finance. O bank overdrafts and trade debit. O commercial bills and bank under-drafts.10- Which one of the financial intermediaries act as middlemen between depositors and lenders who are the users of funds? a. Investment bank b. Finance companies c. Commercial bank d. All of the optionsQUESTION 6 Where are most interest rates determined in the US economy? A. Stock market B. Bond market C. Foreign exchange market D. US Department of the Treasury
