Financial system is a set of arrangements embracing the lending and borrowing of funds by financial economic units.

• True

• False

It is a type of financial market wherein financial instruments will mature in one year or less from the issuance date.

• Primary Market

• Money Market

• National Market

• Dealer Market

It intends to establish a consistent, efficient, and cost-effective bridge between fund providers and fund demanders.

• Financial System

• Regulatory Environment

• Financial Market

• Financial Instruments

Formal organizations having tangible physical locations that conduct trades of designated (listed) securities.

• Over-the-Counter Exchange

• Designated Location Exchange

• Physical Location Exchange

• Stock Exchange

Short-term commercial paper is evidence of indebtedness of any person with a maturity of 12 months or less.

• True

• False

It refers to the market wherein the securities in the primary market are subsequently traded.

• Broker Market

• Secondary Market

• Capital Market

• International Market

These are securities issued by banks which record a deposit made.

• Treasury Bills

• Commercial Paper

• Banker's Acceptances

• Negotiable Certificates of Deposit

The primary objective of financial management is to maximize the firm’s intrinsic value.

• True

• False

Loans extended from one bank to another with which it has no affiliation are called?

• Repurchase Agreements

• Banker's Acceptances

• Interbank Loans

• Bank Loans

The purpose of the money market is to fulfill the short-term credit needs of the business.

• True

• False