Font size
WorksheetsFinancial Environment
Total questions: 15
Worksheet time: 8mins
____________ are intermediaries that channel the saving of individuals, businesses, and governments into loans or investments.
Financial institutions
Kuala Lumpur Stock Exchange
Money markets
Financial markets
Who are the parties involved in the financial market? (can choose more than 1)
Borrowers
Investors
Lenders
Financial institutions
____________ occurs when a business sells its stocks or bonds directly to savers without going through any types of financial institutions.
Indirect transfers through a financial intermediary
Direct transfer of funds
Indirect transfer through investments bankers
____________ occurs when a business sells its stocks or bonds to investors going through the financial institution.
Indirect transfers through a financial intermediary
Direct transfer of funds
Indirect transfer through investments bankers
Which of the following are the financial intermediaries?
Commercial banks
Investment banks
Mutual funds
All of the above
__________ is concerned with establishing the prices of capital market securities and states that the prices of securities fully and fairly reflect all relevant available information.
Efficient Market Hypothesis
Primary market
Secondary market
Capital allocation process
Market efficiency refers to both the speed and the quality of the price adjustment to new information. Which of the following are the three types of Efficient Market Hypothesis? (can choose more than 1)
Weak form efficiency
Semi-strong form efficiency
Large-form efficiency
Strong-form efficiency
WEAK FORM efficiency exists when share prices reflect all available information about PAST CHANGES in the share prices.
TRUE
FALSE
Which of the following refers to SEMI-STRONG FORM efficiency?
It exists when share prices reflect all PAST price movements ONLY.
It exists when share prices reflect all PAST price movements and all knowledge that is available PUBLICLY.
It exists when share prices reflect all PAST price movements, all knowledge that is available PUBLICLY and PRIVATELY.
It exists when share prices reflect ALL information, even "inside" information is embedded in the share prices.
Weak form
Semi-strong form
Strong form
None of the above
Market for long-term maturities, generally more than 1 year period.
Money market
Primary market
Derivative market
Capital market
The corporation wants to raise capital by issuing new securities in the market.
Which market is suitable?
Secondary market
Debt market
Primary market
Equity market
Which of the following is the role of financial market?
Chanelling of funds
Provision of a platform an channel
Pooling of risk
Maturity transformation of funds
What is Intrinsic value?
Current price stated in the market
The true value of the securities
What does it mean when the market price is higher than the intrinsic value in stock market?
The stock price is overvalued - Not to buy (expensive)
The stock price is undervalued - Worth to buy (cheapest)
