Multiple choice questions

Interest rates are determined in the bond market.

• True

• False

A stock is a debt security that promises to make periodic payments for a specific period of time.

• True

• False

Money can be described as follows, except:

• medium of exchange

• unit of account

• store of value

• ownership of a company

Holders of equity have claims on both income and assets that are secondary to the claims of creditors.

• True

• False

Which of the following has the highest risk?

• Stocks

• Bonds

• Treasury bonds

• Fixed deposits

Stock markets link the ........... units (that have excess funds) with ............. units (that need funds).

• surplus; deficit

• deficit; surplus

• debit; credit

• credit; debit

Common stockholders are also known as residual claimants.

• True

• False

Monetary policy affects interest rates but has little effect on inflation or business cycles.

• True

• False

The government organization responsible for the conduct of monetary policy in Egypt is the Central Bank of Egypt

• True

• False

Interest rates can be accurately described as the rental price of money

• True

• False