Financial Markets Quiz 1-2

In financial markets, financial instruments with maturity less than one year is classified as

• Long-term instruments

• Intermediate term instruments

• Capital term instruments

• Short-term instruments

Type of financial securities that mature in less than a year are classified as

• Discounted securities

• Money market securities

• Medium-term securities

• Capital market securities

Type of financial securities in which loans are secured by borrower's property is classified as

• Mortgages

• Corporate bonds

• U.s treasury bonds

• Municipal bonds

...has more cash income flow than expenditure on consumption in a period of time?

• Commercial bank

• Saver

• Investor

• Borrower

Liquidity in financial term is

• A feature of money only

• The best measure of risk of a financial asset

• The ease with which an asset can be sold at a-published-market price

• To lower the rate of return for an asset

A primary financial market is one that:

• Offers financial assets with the highest expected return

• Involves the sale of financial assets for the first time

• Offers financial assets with the highest historical return

• Offers the greatest number of financial assets

Discount instrument are issued at

• Face value

• Face value plus interest

• A price lower than face value

• A price higher than face value

Which asset below are financial assets?

• Physical assets

• Real assets

• Tangible assets

• Securities

Expansionary monetary policy can be implemented by:

• Selling Treasuries to member bank

• Buying Treasuries from member bank

• Selling corporate bonds

• Buying corporate bonds

Through financial market, government and central bank can stabilize and regulate currency circulation, which help them…

• Stabilize the exchange rate

• All of the above

• Control inflation

• Offset budget deficit