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gdcd kì2

Total questions: 100

Worksheet time: 50mins

Name
Class
Date
1.

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

a)

Mobilizing savings

b)

Allocating capital

c)

Creating regulations

d)

Facilitating payments

2.

A financial intermediary:

a)

Produces goods

b)

Borrows from savers and lends to borrowers

c)

Issues government bonds

d)

Controls monetary policy

3.

Fiat money is:

a)

Backed by gold

b)

A type of commodity

c)

Declared legal tender by government

d)

Used only for online transactions

4.

Which of the following is not a feature of money?

a)

Medium of exchange

b)

Unit of account

c)

Store of wealth

d)

Increases government revenue

5.

What kind of market trades short-term debt securities?

a)

Capital market

b)

Stock market

c)

Money market

d)

Commodity market

6.

Which of the following is not a function of central banks?

a)

Supervising commercial banks

b)

Providing long-term credit

c)

Issuing currency

d)

Conducting monetary policy

7.

Which of the following is a direct tax?

a)

VAT

b)

Import tax

c)

Excise tax

d)

Personal income tax

8.

Which financial statement shows the firm’s assets, liabilities, and equity at a point in time?

a)

Income statement

b)

Balance sheet

c)

Cash flow statement

d)

Tax return

9.

Inflation causes:

a)

Money to gain value over time

b)

Prices to decrease

c)

Real interest rates to be lower than nominal rates

d)

Government spending to fall

10.

Which of the following is considered a fixed asset?

a)

Cash

b)

Inventory

c)

Equipment

d)

Account receivable

11.

The most liquid asset is:

a)

Inventory

b)

Building

c)

Cash

d)

Machinery

12.

The main goal of financial management is to:

a)

Maximize revenue

b)

Maximize firm size

c)

Maximize shareholder wealth

d)

Minimize cost

13.

Which of the following is not a role of the stock market?

a)

Providing long-term capital

b)

Facilitating liquidity

c)

Controlling inflation

d)

Price discovery

14.

The primary market is where:

a)

Old securities are resold

b)

Derivatives are traded

c)

New securities are issued

d)

Government bonds are taxed

15.

Who benefits most when inflation is lower than expected?

a)

Borrowers

b)

Government

c)

Lenders

d)

Consumers

16.

What does an inverted yield curve usually indicate?

a)

Economic expansion

b)

High inflation

c)

Future interest rate rise

d)

Economic slowdown

17.

Which of the following is a capital market instrument?

a)

Treasury bill

b)

Commercial paper

c)

Corporate bond

d)

Certificate of deposit

18.

The function of financial intermediaries is to:

a)

Eliminate financial risk

b)

Provide information and liquidity

c)

Print money

d)

Supervise financial markets

19.

The higher the inflation rate, the:

a)

Higher the real interest rate

b)

Lower the nominal interest rate

c)

Lower the purchasing power of money

d)

More stable the currency

20.

E-money is:

a)

Physical currency

b)

Digital representation of money

c)

Commodity money

d)

Issued by IMF

21.

The most commonly used tool of monetary policy is:

a)

Reserve requirement

b)

Discount rate

c)

Open market operations

d)

Direct lending


22.

Which of the following is not a participant in the money market?

a)

Central bank

b)

Insurance company

c)

Treasury

d)

Commercial bank

23.

Fiscal policy is mostly concerned with:

a)

Controlling inflation

b)

Government spending and taxation

c)

Money supply

d)

Exchange rate

24.

The crowding-out effect refers to:

a)

Increase in private investment

b)

Government borrowing raising interest rates

c)

Increased exports

d)

Decreased inflation

25.

The yield on a bond is affected by:

a)

Interest rate

b)

Time to maturity

c)

Risk

d)

All of the above

26.

A tax levied on the purchase of goods and services is:

a)

Income tax

b)

Property tax

c)

Excise tax

d)

Consumption tax

27.

A zero-coupon bond:

a)

Pays interest annually

b)

Is sold at par

c)

Has no maturity

d)

Is sold at discount and pays no periodic interest

28.

The exchange rate is determined by:

a)

Government decree

b)

Central planning

c)

Demand and supply of currencies

d)

Tax policy

29.

If interest rate increases, the present value of a bond:

a)

Increases

b)

Decreases

c)

Remains constant

d)

Depends on inflation

30.

Which of the following does not cause a shift in the supply of loanable funds?

a)

Changes in wealth

b)

Changes in interest rate

c)

Expectations of future income

d)

Changes in time preferences

31.

Which market allows investors to sell previously issued securities?

a)

Primary market

b)

Secondary market

c)

IPO market

d)

Venture capital

32.

What is a distinguishing feature of common stock?

a)

Fixed return

b)

Voting rights

c)

Tax exemption

d)

First claim on assets

33.

Which is an example of indirect finance?

a)

Buying corporate bonds

b)

Taking a loan from a bank

c)

Buying government securities

d)

Investing in stock market

34.

Which of the following is not a money market instrument?

a)

Treasury bill

b)

Commercial paper

c)

Stock

d)

Certificate of deposit

35.

The financial instrument with lowest risk is usually:

a)

Common stock

b)

Government bond

c)

Corporate bond

d)

Derivative

36.

Which of the following institutions is part of the financial system?

a)

Ministry of Health

b)

Commercial bank

c)

Tax department

d)

Police

37.

Budget deficit occurs when:

a)

Revenue equals spending

b)

Revenue exceeds spending

c)

Spending exceeds revenue

d)

There is a surplus

38.

Which of the following increases the demand for money?

a)

Higher interest rate 

b)

Higher income

c)

Lower prices

d)

Lower employment

39.

The risk premium (phần bù rủi ro) is the difference between:

a)

Real and nominal interest rate

b)

Expected return and guaranteed return

c)

Return on risky and risk-free assets

d)

Inflation and interest rate

40.

What does VAT stand for?

a)

Value-at-trade

b)

Variable added tax

c)

Value added tax

d)

Variable accounting term

41.

Credit risk refers to the possibility that:

a)

Interest rates fall

b)

Inflation rises

c)

Borrowers may default

d)

Currency depreciates

42.

If money supply increases faster than real output, it tends to cause:

a)

Deflation

b)

Recession

c)

Inflation

d)

Economic growth

43.

Which of the following tools is used to contract the money supply?

a)

Buying government securities

b)

Lowering reserve requirement

c)

Selling government bonds

d)

Decreasing discount rate

44.

What is the main goal of monetary policy?

a)

Raise taxes

b)

Ensure banking profitability

c)

Stabilize prices and support economic growth

d)

Increase exports

45.

What causes the demand curve for loanable funds to shift?

a)

Changes in population

b)

Changes in productivity

c)

Investment opportunities

d)

Government spending

46.

The term “financial instrument” refers to:

a)

Tools used in construction

b)

Contracts with monetary value

c)

Legal documents only

d)

Software for accounting

47.

A government bond is:

a)

Equity instrument

b)

Ownership share

c)

Debt instrument

d)

Money market instrument only

48.

Monetary base includes:

a)

Only coins and paper currency

b)

Cash and demand deposits

c)

Currency in circulation and bank reserves

d)

Only time deposits

49.

Which of the following increases the real interest rate?

a)

Increase in inflation

b)

Decrease in nominal rate

c)

Decrease in inflation

d)

None of the above

50.

Which institution in Vietnam issues monetary policy?

a)

Ministry of Finance

b)

Vietnam Securities Commission

c)

State Bank of Vietnam

d)

General Statistics Office

51.

Which of the following illustrates money as a store of value?

a)

Saving 5 million VND in a bank account

b)

Buying a shirt with 500,000 VND

c)

Pricing a phone at 10 million VND

d)

None of the above

52.

Which is considered non-tax revenue of the government?

a)

Interest from loans provided to other countries

b)

Personal income tax

c)

Corporate income tax

d)

Value-added tax

53.

A complete financial system includes:

a)

Financial intermediaries

b)

Financial instruments

c)

Financial markets

d)

All of the above

54.

Direct taxes are:

a)

Shifted to others

b)

Paid by one person, but borne by another

c)

Levied directly on income or wealth

d)

None of the above

55.

The correct sequence of monetary evolution:

a)

Barter, commodity money, fiat money, e-money

b)

Fiat money, barter, commodity money, e-money

c)

Commodity money, check, e-money, barter

d)

Fiat money, e-money, barter, commodity

56.

Government’s spending on teacher salaries is:

a)

Capital spending

b)

Revenue spending

c)

Loan repayment

d)

Infrastructure investment

57.

Which of the following actions is expansionary fiscal policy?

a)

Cut government spending

b)

Raise taxes

c)

Increase infrastructure investment

d)

Reduce subsidies


58.

Capital structure of a firm refers to:

a)

Only equity

b)

Debt and equity

c)

Only long-term loans

d)

Cash and inventory

59.

Which is not a short-term liability?

a)

Accounts payable

b)

Accrued expenses

c)

Issuance of 5-year bonds

d)

Notes payable within 12 months

60.

Loanable funds supply increases with:

a)

Lower interest rates

b)

Greater income and savings

c)

Higher expected inflation

d)

All incorrect

61.

Which transaction belongs to money market?

a)

Issuing corporate bonds

b)

Selling treasury bills

c)

Buying real estate

d)

Issuing new shares

62.

When expected inflation is 7% and nominal rate is 9%, real interest rate is:

a)

16%

b)

2%

c)

7%

d)

-2%

63.

A major feature of public finance is:

a)

Profit maximization

b)

Personal gain

c)

Social benenfit

d)

Competitive market

64.

The basic accounting identity in finance is:

a)

Equity = Assets – Liabilities

b)

Assets = Equity – Liabilities

c)

Liabilities = Equity + Assets

d)

Assets = Liabilities + Equity

65.

Financial markets primarily transfer funds from:

a)

Government to public

b)

Those with surplus to those with deficit

c)

Taxpayers to tax collectors

d)

Borrowers to lenders

66.

Real interest rate can be approximated as:

a)

Nominal rate + inflation

b)

Nominal rate – inflation

c)

Only nominal rate

d)

Inflation rate

67.

According to maturity, the financial market is divided into:

a)

Equity and bond market

b)

Short-term and long-term market

c)

Money market and capital market

d)

Primary and secondary market

68.

Money demand increases when:

a)

Income increases

b)

Interest rate decreases

c)

Price level rises

d)

All correct

69.

If a firm sells bonds, the impact on balance sheet is:

a)

Increase in liabilities and decrease in assets

b)

Increase in liabilities and assets

c)

Increase in equity only

d)

No change

70.

The two main types of financial systems are:

a)

Regulated and unregulated

b)

Bank-based and market-based

c)

Equity and bond systems

d)

Open and closed

71.

Capital market deals with instruments with maturity:

a)

Less than 1 year

b)

From 3 months to 1 year

c)

More than 1 year

d)

Exactly 6 months

72.

Present value of $1,200 to be received in 3 years at 5% interest:

a)

$1036

b)

$1200

c)

$1100

d)

$1036.28

73.

Treasury bills are traded in:

a)

Money market

b)

Capital market

c)

Derivative market

d)

Commodity market

74.

A commercial paper due in 180 days is classified as:

a)

Capital instrument

b)

Long-term liability

c)

Money market instrument

d)

Equity

75.

An increase in inflation expectation would:

a)

Lower real interest rate

b)

Decrease nominal rate

c)

Increase bond prices

d)

None

76.

National budget includes:

a)

Revenues and expenditures only

b)

Tax income only

c)

Grants only

d)

External debts only

77.

Financial instruments include:

a)

Shares

b)

Bonds

c)

Derivatives

d)

All above

78.

Bank loans to firms are:

a)

Equity

b)

Long-term capital

c)

Liabilities for firms

d)

Assets for firms

79.

If CPI rises, the purchasing power of money:

a)

Increases

b)

Remains constant

c)

Decreases

d)

Doubles

80.

A firm's retained earnings are recorded as:

a)

Liabilities

b)

Revenues

c)

Equity

d)

Expenses

81.

Open market operations are tools of:

a)

Fiscal policy

b)

Trade policy

c)

Monetary policy

d)

Industrial policy

82.

The largest financial intermediary is usually:

a)

Investment banks

b)

Insurance companies

c)

Central banks

d)

Commercial banks

83.

The interest rate is determined in the:

a)

Product market

b)

Money market

c)

Labor market

d)

Resource market

84.

Government borrowing increases:

a)

Equity

b)

Public debt

c)

Taxes

d)

Imports

85.

T-bills are:

a)

Long-term investments

b)

Zero-coupon, short-term instruments

c)

Equity securities

d)

 Bank deposits

86.

Which is a feature of a progressive tax?

a)

Fixed amount

b)

Flat rate

c)

Increases with income

d)

Decreases with income

87.

Insurance companies are:

a)

 Real sector institutions

b)

Non-bank financial intermediaries

c)

Banks

d)

Regulatory authorities

88.

Financial assets include all except:

a)

Cash

b)

Equipment

c)

Stocks

d)

Bonds

89.

Which policy reduces inflation?

a)

Expansionary fiscal

b)

Expansionary monetary

c)

Contractionary monetary

d)

None

90.

An IPO occurs in the:

a)

Secondary market

b)

Money market

c)

Capital market

d)

Black market

91.

The budget deficit occurs when:

a)

Tax > Expenditure

b)

Expenditure > Tax revenue

c)

Imports > Exports

d)

Income > Expenditure

92.

Debt instruments include:

a)

Stocks

b)

Loans

c)

Land

d)

Buildings

93.

Examples of capital expenditure:

a)

Public servant salary

b)

School construction

c)

Military allowance

d)

Police training

94.

Money’s role as medium of exchange is best shown when:

a)

You save for retirement

b)

You check prices

c)

You buy groceries

d)

You compare product prices

95.

Equity financing means:

a)

Taking loans

b)

Issuing stocks

c)

Selling bonds

d)

Borrowing from bank

96.

Central bank controls inflation by:

a)

Cutting interest rates

b)

Reducing money supply

c)

Increasing subsidies

d)

Reducing taxes

97.

Coupon bonds pay:

a)

A fixed periodic interest

b)

Variable interest

c)

One-time lump sum

d)

None

98.

A feature of liquid asset:

a)

Easy to convert to cash

b)

High return

c)

High risk

d)

Long-term holding

99.

VAT is a type of:

a)

Direct tax

b)

Indirect tax

c)

Progressive tax

d)

Lump-sum tax

100.

Short-term treasury instruments are used to:

a)

Finance long-term projects

b)

Control inflation

c)

Cover temporary budget deficits

d)

Buy gold

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