Financial markets - quiz 1

Which of the followings is not a financial intermediary?

• Credit union

• Government

• Commercial bank

• Financial company

Which of the followings is not an advantage of the financial intermediary in facilitating flow of funds?

• the ability to create secondary securities that differ in ($) value from primary securities that are issued

• earns profit from the difference between interest rates on lending and borrowings

• reduce the risk of lending to borrowers thus encourage lending

• borrow for different time periods than for what they lend

Which of the followings is/are not example(s) of direct finance:

• Bank loan

• Bank bill

• Treasury bill

• Bond

In the Australian Stock exchange, shares are traded...

• The companies which issue the shares and investors who invest in the shares

• Among investors/shareholders who own the shares, where ownership is transferred

• Both of the above

• None of the above

Which of the followings is a money market?

• Share market

• Market for bills

• Bond market

• All of the above

• None of the above

Who is the issuer of the financial asset (who issues the financial asset) in a bank loan transaction?

• The bank

• The borrower

• Depositor of money in the bank

• None of the above

Who is the issuer of a company's share (or stock)?

• The company itself

• The shareholder

• The bank

• None of the above

Which of the followings are attributes of a financial assets?

• Liquidity

• Hybrid

• Return

• Risk

Which of the followings are examples of capital markets?

• Bond market

• Bill market

• Equity market

• Money market

A stock market is:

(There can be more than one answer for this question)

• A primary market

• A secondary market

• A money market