Final Examination for FIM01

Which of the following is not a part of the financial system?

• Money

• Financial Institutions

• Exchange Rate

• Central Bank

What part of the financial system controls the availability of money and credit?

• Financial Market

• Central Bank

• Regulatory Agency

• Financial Institutions

The Philippine Stock Exchange is an example of a:

• Financial Institution

• Financial Market

• Financial Instrument

• Central Bank

Which of the following is not a function of money?

• Store of value

• Medium of exchange

• Unit of account

• Source of wealth

The term for money whose value comes from government decree is:

• Commodity money

• Fiat money

• Token money

• Digital money

The core principle stating that interest is paid to compensate lenders for time.

Which characteristic of money makes it easy to use for buying and selling goods?

• Liquidity

• Scarcity

• Profitability

• Stability

Financial institutions act as intermediaries between savers and borrowers.

• TRUE

• FALSE

Commodity money has no intrinsic value.

• TRUE

• FALSE

The type of money that has intrinsic value such as gold or salt.