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FINANCIAL MARKET

Total questions: 25

Worksheet time: 36mins

Name
Class
Date
1.

Financial markets comprise of money market and capital market.

a)
b)
2.

Financial markets function as both primary and secondary markets for debt and equity securities.

a)
b)
3.

The secondary market refers to the original sale or sales of securities for the first time by governments and corporations.

a)
b)
4.

By law, public offerings of debt and equity must be registered with Securities Commision (SC).

a)
b)
5.

Money markets are the markets for debt securities that will be repaid in the long term.

a)
b)
6.

In money market, large firms also .......... when they have surplus cash (e.g: invest in commercial paper) and ............ when they are short of money.

a)

borrow; lend

b)

lend; borrow

c)

sell securities; buy securities

d)

issue securities; call back securities

7.

All the following securities are traded in money market except

a)

treasury bills

b)

repurchase agreements

c)

bankers' acceptances

d)

debentures

8.

Bond represents the ownership of the company as well as equity.

a)
b)
9.

Preference shares carry the right to fixed dividend which have priority to received claim on assets and returns before bondholder but after common shareholder.

a)
b)
10.

In Malaysia, the primary and secondary markets concerned are managed by Bursa Malaysia.

a)
b)
11.

In secondary market, the issuer does not involved and receive any proceed from the traded securities whereby the securities changes hand between investors only.

a)
b)
12.

Bursa Malaysia is an exchange holding company and one of the largest bourses in Asia.

a)
b)
13.

A derivative is a financial instrument where the value is derived from other financial securities or other underlying assets.

a)
b)
14.

Examples of derivative are (you can choose more than one answer)

a)

forwards

b)

futures

c)

options

d)

swaps

15.

A forward contract is an agreement to buy or sell an underlying asset at some time in the ........., at a price agreed upon ...........

a)

spot; today

b)

spot; forward

c)

future; today

d)

future; forward

16.

Jaja has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach?

a)

Primary market

b)

Secondary market

c)

Derivative market

d)

Money market

17.

A money market instruments issued on behalf of Central Government is called

a)

Call money

b)

Commercial paper

c)

Treasury bill

d)

Commercial bill

18.

The market for new issue shares is known as ......

a)

Money market

b)

Primary market

c)

Stock exchange

d)

Secondary market

19.

Two types of primary market activities are public offerings and private placements.

a)
b)
20.

In Malaysia, all publicly traded financial securities are traded in Security Commission.

a)
b)
21.

The Malaysian financial system is structured into two major categories, Financial Institutions and Capital Market.

a)
b)
22.

The Financial Market in Malaysia comprises ....

a)

.... one major market namely Money & Foreign Exchange Market.

b)

.... two major markets namely Money & Foreign Exchange Market, and Capital Market.

c)

.... three major markets namely Money & Foreign Exchange Market, Capital Market, and Derivatives Market.

d)

.... four major markets namely Money & Foreign Exchange Market, Capital Market, Derivatives Market, and Offshore Market.

23.

All the following are types of non-bank financial intermediaries except ....

a)

Discount Houses

b)

Cagamas Berhad

c)

Provident and Pension Funds

d)

Development Finance Institutions

24.

The features of money market instruments are high liquidity and high risk.

a)
b)
25.

The features of capital market instrument is having more than one year maturity period and has higher return.

a)
b)