Banking & Financial Institutions - Prelim Quiz 2

International financial institutions are part of our financial system.

• True

• False

It is a network of various institutions that generate, circulate, and control money and credit.

Those who have deficit money are inclined to look for profitable investments or to lend money in order to earn interests.

• True

• False

In a larger market, __________________ need to facilitate the meeting of lenders and borrowers.

In a highly developed economy, _________________ need to satisfy the business interest of both suppliers and users of funds.

These are evidenced by financial instruments.

Financial obligations which are to be paid.

These are claims of ownership.

Act as middlemen between suppliers and users of credit.

Serves as a means of bringing the forces of demand and supply of financial claims.