Financial markets Lesson 2

A liability is...

• something that incurs interest.

• something that is owned.

• something that is owed.

• something that grows.

The main purpose of the money market is to raise...

• long-term finance

• short-term finance

• medium term finance

A treasury bill is also known as a...

• T-Bill

• Gov-bill

• State-bill

• G-Bill

Governments issued bonds as know as what in the UK?

• Golden bond

• Gilt

• Gold edge bond

True or false?

The primary (new issue) market is where newly issued securities are sold by companies and governments.

• True

• False

Spot transactions involve the exchange of foreign currencies at some specified time and rate in the future the whereas forward markets involve immediate exchange of foreign currency .

• True

• False

An asset is...

• something that is owned.

• something that is owed.

• something that is transferred.

• something that is kept.