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FINANCIAL MARKET AND INSTITUTION

Total questions: 7

Worksheet time: 2mins

Name
Class
Date
1.

Which is NOT the function of financial markets and intermediaries?

a)

Transfering resources across time and space.

b)

Risk transfer and diversification

c)

The payment mechanism

d)

Safety and assurance

2.

Investor can buy shares in a private corporation.

a)

True

b)

False

3.

Previously issued securities are traded among investors in the secondary markets.

a)

True

b)

False

4.

The market for short-term debt (less than one year) is called the ______ market.

a)

Capital

b)

Money

c)

Derivative

d)

Security Market

5.

_______ instruments are also called fixed-income instruments.

a)

Debt

b)

Equity

c)

Derivative

d)

All of the answers

6.

A financial institution:

a)

raises financing by selling shares.

b)

is a kind of financial intermediary.


c)

simply pools and invests savings.

d)

invests primarily in commodities.

7.

Financial literacy is important even for those who are not interested with money.

a)

Agree

b)

Disagree

c)

Not sure