Money & Capital Market Quiz 1

What is the main function of a financial system?

• To store physical goods

• To transfer money from borrowers to savers

• To channel money from savers to borrowers

• To print new money

Which of the following is NOT a purpose of the financial system?

• Smooth transfer of funds

• Creating jobs through manufacturing

• Turning savings into investment

• Fulfilling short- and long-term needs

How does the financial system support national growth?

• By increasing taxes

• By managing funds efficiently

• By reducing the number of banks

• By printing money

Which example shows the financial system creating capital for growth?

• EPF investing in real estate abroad

• Government issuing bonds to build roads

• A person saving money in a piggy bank

• Selling used equipment

Which financial institution is primarily responsible for retirement savings?

• Bank Negara Malaysia

• Maybank

• EPF

• Bursa Malaysia

What is meant by ‘intermediation’ in the financial system?

• Saving money under a mattress

• Direct borrowing from the government

• Collecting money from savers to give to borrowers

• Using money to buy groceries

Which of the following is a benefit of a secure fund channeling system?

• Slower fund transfers

• Higher fraud risk

• Better trust among participants

• Higher investment fees

How does the financial system help individuals?

• By giving them free money

• By reducing working hours

• By offering loans and savings options

• By collecting donations

What type of market would a 6-month loan fall under?

• Primary market

• Capital market

• Money market

• Derivatives market

Which institution is an example of a development financial institution (DFI)?

• Prudential

• EPF

• Agrobank

• Touch ‘n Go