FCPC - BSAIS - Pre5 - Midterm Exam

powerful as it provides fact-based and science-based decision making in safety, security, and sanitation.

is usually expressed in terms of sources, events, consequences, and likelihood, is the effect of uncertainty on objectives

It is the difference between the interest

income a bank earns from its lending activities and the interest it pays to depositors.

• net income interest

• net interest income

Which is NOT a function of the financial market?

• risk sharing

• saves time and energy

• mobilization of fund

It is the tendency of an investment or market to rise or fall in price within a short period of time.

A derivative instrument that suggests a contract between two traders for purchase and delivery of assets at a specific time and future date; it is also traded on stock exchange.

• forward

• future

• swap

Market risk is inevitable.

• true

• false

It refers to a marketplace where buyers and sellers participate in the trade.

____ traders bid up prices on a good news day, while ____ traders drive prices down on bad news.

• bullish, bullish

• bearish, bullish

• bullish, bearish

It is used to measure the risk of loss on a portfolio of financial assets, or an investment, over a specific period.