TOPIC 1 FMI 30 JAN 2023

Define Financial Market

• a market in which financial

   assets (securities) such as stocks and bonds

  can be purchased or sold

• a market in which financial

   assets (securities) such as stocks and bonds

  can be purchased

• a market in which financial

   assets (securities) such as stocks and bonds

  can be sold

Participants that provide funds are called surplus units

• TRUE

• FALSE

Participants that enter markets to obtain funds are deficit units

• TRUE

• FALSE

Define Direct Finance

• •Borrowers borrow from lenders in financial markets by selling financial instruments which are claims on the borrower’s future income or assets

• •Borrowers borrow directly from lenders in financial markets by selling financial instruments which are claims on the borrower’s future income or assets

The flow of short-term funds is facilitated by money markets

• TRUE

• FALSE

The flow of long-term funds is facilitated by capital markets

• TRUE

• FALSE

Primary markets facilitate the issuance of old securities

• TRUE

• FALSE

Capital market securities are those with a maturity of more than one year or no maturity period.

• TRUE

• FALSE

qMarkets are efficient when security prices fully reflect all available information

• MARKET PREFERENCES

• MARKET EFFICIENCY

• MARKET PLACE

Are you HAPPY today

• YES

• NO

• NOT SURE