Management of Financial Services Module 2 Quiz

What is the primary role of financial services in economic development?

• To mobilize savings and channel them into productive investments

• To eliminate unemployment

• To increase taxes

• To reduce government spending

Which of the following is NOT a characteristic of financial services?

• Perishability

• Intangibility

• Inseparability

• Standardization

What does financial intermediation refer to?

• The process of regulating financial markets

• The process of mobilizing funds from savers to those in need

• The process of creating new financial products

• The process of auditing financial statements

Which of the following is a type of fund-based financial service?

• Credit rating

• Insurance

• Venture capital

• Stock broking

What is the main function of merchant banking?

• Offering insurance services

• Managing investment portfolios

• Arranging funds rather than providing them

• Providing loans to individuals

Which of the following services is related to risk financing?

• Portfolio management

• Insurance

• Loan syndication

• Securitization

What is the purpose of credit rating?

• To provide loans to businesses

• To assess the creditworthiness of a company

• To manage investment portfolios

• To facilitate mergers and acquisitions

Which of the following is a non-fund based service?

• Loan syndication

• Securitization

• Venture capital

• Factoring

What does the term 'perishability' in financial services imply?

• Services can be stored for future use

• Services must be provided when customers need them

• Services are always available

• Services can be standardized

Which of the following is a characteristic of financial services?

• High tangibility

• Standardized offerings

• Low variability

• Dominance of human element