WorksheetsBF 1 - Overview of Financial Systems (1)
Total questions: 12
Worksheet time: 10mins
Financial systems promote economic efficiency by _______
reducing investment.
channeling funds from savers to investors.
creating inflation.
channeling funds from investors to savers.
Which of the following can be described as direct finance?
You buy shares in a mutual fund.
You buy a health service package from an insurance company.
You take out a loan to buy a house from a bank.
You borrow 10 million VND from a classmate.
An important function of secondary markets is to ___________
create a market for newly constructed houses.
raise funds for corporations through the sale of securities.
make it easier for governments to raise taxes.
make it easier to sell financial instruments to raise funds.
Secondary markets make financial instruments more _______
risky.
liquid.
vapid.
solid.
As I buy (a) , I own a portion of a business and have the right to vote on important issues.
A debt instrument is intermediate term if its maturity is less than one year.
True
False
A debt instrument is intermediate term if its maturity is ten years or longer.
True
False
The income from bonds is typically more variable than that from equities.
True
False
The maturity of a debt instrument is the number of years to that instrumentʹs expiration date.
True
False
This transaction is primary market or secondary market transaction: Daichi Insurance Company purchased 1,000,000 shares of LeGia Corp. when the company issued stock.
Primary market
Secondary market
This transaction is primary market or secondary market transaction: Tuan purchased 300 shares of FPT through his brokerage account.
Primary market
Secondary market
The main functions of financial systems are to:
• provide the (1) ___________ by which funds can be transferred from units in surplus to units with a shortage of (2) __________ in order to directly or indirectly facilitate lending and borrowing
• enable wealth holders to (3) _________ the composition of their portfolios
• provide (4) ____________ mechanisms, e.g. cheques, debit cards and credit cards
• provide mechanisms for risk transfer.
