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WorksheetsIntroduction to Financial System
Total questions: 20
Worksheet time: 10mins
______ is a market for new issues.
Money market
Capital market
Primary market
Secondary market
Which of the following is a financial asset?
Gold
Share
Silver
Land
Money market deals with _____ instruments.
Long term
Medium term
Short term
All of the above
_______ is an important instrument of short term borrowing by the government.
National saving certificate
Bonds
Treasury bills
All of the above
Financial institutions are also known as ________.
Financial organisation
Financial intermediaries
Financial system
All of the above
Which is not a component of financial system?
Financial intermediaries
Financial service
Financial management
Financial market
The structure that is available in an economy to mobilise the capital from various surplus sectors of the economy and allocate and distribute the same to the various needy sectors is known as _________.
Economic environment
Financial environment
Financial system
Financial market
Any corporation which accept or create demand deposits subject to withdrawal by check.
Commercial Bank
Offshore banking
Rural bank
Thrift bank
What is it called when a lender and borrower deal directly with each other, without the help of a financial institution?
Private room
Privacy Act of 2012
Private Placement
Stocks and Bonds
Primary and secondary markets are markets for short-term and long-term securities, respectively.
True
False
The money market involves trading of securities with maturities of one year or less while the capital market involves the buying and selling of securities with maturities of more than one year.
True
False
Commercial banks get most of their funds for lending from where?
Cash deposits by customers
Borrowing from the government
Cash from the bank owners
What type of financial institution is described by the following?
A company who collects payments from customers, invests the money and pays customers back when a certain event occurs. For example, an employee pays Philhealth a small amount each year, and Philhealth gives the employee a big payment when she meets a road accident.
Credit Card Company
Insurance Company
Savings Bank
Stocks, bonds and derivatives are examples of ________.
Musical instruments
Financial liabilities
Financial instruments
All of the above
What type of financial market offers the following type of financial instruments?
Debt and equity instruments that are meant for long term investments, such as long term bonds (debt) and stock (equity).
Capital Market
Money Market
Sinovac is a Chinese company that developed a Covid-19 vaccine. Sinovac got $515 million dollars in exchange for 15% ownership in Sinovac.
What type of financial instrument was used to raise the $515 million?
Debt
Equity
Sinovac is a Chinese company that developed a Covid-19 vaccine. Sinovac got $515 million dollars in exchange for 15% ownership in Sinovac.
Which of the following statements are true?
Sinovac must pay the $515 million back, plus interest
The investor of the $515 million is not guaranteed to be paid back, but if Sinovac is successful, they will share in the profits.
Which of the following is not a regulatory institutions in Indian financial system
RBI
CIBIL
IRDA
SEBI
————— represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend.
physical asset
fixed asset
financial asset
domestic asset
.............is a product whose value is derived from the value of underlying asset
Repo
G Sec
T Bill
Derivative
