FM-Topic 2

Financial market is a market in which people and entities can trade ____________ at low transaction costs and at prices that reflect supply and demand.

• financial securities

• commodities

• fungible items

• all of the above

Which of the following is an example of money market instrument?

• treasury bond

• corporate bond

• ordinary shares

• bankers' acceptances

Primary function of capital market allows

• organisation to raise finance by issue of new shares or debentures.

• investors to buy or sell their investment easily.

Which of the following is an example of pension fund in Malaysia?

• Employees Provident Fund (EPF)

• Lembaga Tabung Haji (LTH)

• Development and Finance Institution (DFI)

Match the following description to the role of financial intermediaries.

Financial intermediaries help to spread the investor risk by allowing the purchase of unit trust instead of each individual stock.

• maturity transformation

• marketability

• protection for investors

• risk reduction

Match the following description to the role of financial intermediaries.

Securities Commission (SC) governs the financial products and protects investors from unnecessary risk.

• protection for investors

• marketability

• information and advice

• risk reduction

Match the following description to the role of financial intermediaries.

Financial intermediaries have adequate reserve of liquid assets so that depositors can access to their funds earlier than the full settlement from borrowers.

• maturity transformation

• marketability

• reduction in transaction cost

• information and advice

This ownership allows you to vote during Annual General Meeting (AGM), appoints Board of Directors (BOD), and receives dividends after payment to preference shareholders.

• Ordinary shareholder

• Preference shareholder

• Debenture holder

This investment tool allows investor to receive capital gain and income distribution by owing the shareholding of a fund that manages income-producing commercial real estate such as shopping complexes, hospitals, plantations and hotels.

• Real Estate Investment Trust (REIT)

• Exchange Traded Fund (ETF)

• Warrant

• Crude Palm Oil Futures (FCPO)

Which of the following is one of the commodity-related instruments?

• Crude Palm Oil Future

• FTSE Bursa Malaysia KLCI Futures (FKLI)

• 3-month Kuala Lumpur Interbank Offered Rate Futures