Financial Markets Quiz

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

• Money market securities

• Capital market securities

• Medium-term securities

• Discounted securities

Which channel is considered as the flow of fund without intermediaries?

• Direct financing

• Commercial bank

• Indirect financing

• Centralized financing

New York Stock Exchange is an example of

• Liquid markets

• Capital markets

• Money markets

• Short-term markets

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

• All of the above

• Stabilize the exchange rate

• Control inflation

• Offset budget deficit

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

• Capital term instruments

• Intermediate term instruments

• Short-term instruments

• Long-term instruments

Aftermarket is another name of:

• The secondary market

• The debt market

• The securities market

• The market

The major difference between debt market instruments and equity market instruments is

• The price of issuance

• The issuers

• The maturities

• The market price

A financial market is one that:

• Offers financial assets with the highest historical return

• Offers financial assets with the highest expected return

• Involves the sale of financial assets for the first time

• Offers the greatest number of financial assets

Which of the following is a NOT possible advantage of direct financing?

• The amount of mobilized capital is large

• Matching amounts of funds to be borrowed with those to be lent.

• Reduce cost of the financial intermediary involved.

• The amount of mobilized capital is limited

In the financial market, funds are mobilized from

• None of the above

• Both of the above

• Saver to lender

• Lender to spender