CAPITAL MARKET FINP6

What are the major players in the financial system?

• All of the above

• Non-financial institutions

• Financial institutions/intermediaries

• Households or consumers

What is the meaning of financial system?

• A system for trading goods and services

• A system for regulating international trade

• A system for managing a country's economy

• A system for managing personal finances

What is the importance of the financial system in the nation?

• To control the population growth

• To promote cultural activities

• To provide a medium of exchange

• To regulate the climate

Which of the following is a function of the financial system?

• To provide a mechanism for time travel

• To provide a mechanism for risk sharing

• To provide a mechanism for weather forecasting

• To provide a mechanism for space exploration

Who are the participants in the financial system?

• None of the above

• Both households or consumers and financial institutions/intermediaries

• Only financial institutions/intermediaries

• Only households or consumers

What is the role of BSP in the economic development of the Philippines?

• To manage the transportation system

• To regulate the entertainment industry

• To maintain price stability

• To promote tourism

What is monetary policy?

• A policy for managing personal finances

• A policy for regulating international trade

• A policy for controlling the weather

• A policy for managing a country's economy

What are the tools of monetary policy?

• All of the above

• Regulating the margin requirements of stock exchange securities

• Increasing or decreasing interest rates

• Rationing central bank credit

What are financial markets?

• Markets for managing personal finances

• Markets for trading goods and services

• Markets for regulating international trade

• Markets for trading financial instruments

What is the difference between money market and capital market?

• Money market deals with long-term debt and equity instruments, while capital market deals with short-term debt instruments

• Money market deals with short-term debt instruments, while capital market deals with long-term debt and equity instruments

• Money market is used for personal finances, while capital market is used for international trade

• Money market is used for international trade, while capital market is used for personal finances