Financial Markets Quiz

Aftermarket is another name of

• The securities market

• The debt market

• The secondary market

• The primary market

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

• Cost of preparing legal contracts, taxation, and accounting advice

• Cost of the financial intermediary involved

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

• Assessment of the risk of the borrower

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

• Commercial bank

• Saver

• Investor

• Borrower

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

• Direct financing

• Indirect financing

• Centralized financing

• Commercial bank

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

Which of the following role is NOT belonged to financial market?

• Risk sharing and dispersion

• Improve the efficiency of using financial resources

• Distribute at a large scale to the growth of national GDP

• Tool for macroeconomic stabilization and risk reduction

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

• Control inflation

• Increase taxes

• Reduce employment

• Decrease exports

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

Which asset below are financial assets?

• Physical assets

• Real assets

• Tangible assets

• 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