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FFM - INTRODUCTION TO FINANCIAL SYSTEM

Total questions: 20

Worksheet time: 14mins

Name
Class
Date
1.

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

a)

Financial instruments

b)

Financial service

c)

Financial management

d)

Financial market

2.

Which of the following is not a financial institution?

a)

Commercial Bank

b)

Insurance Company

c)

Mutual Funds

d)

Pension funds

3.

Financial institutions are also known as ________.

a)

Financial organisation

b)

Financial intermediaries

c)

Financial system

d)

All of the above

4.

Which of the following is a non-banking financial institutions?

a)

Cooperative Banks

b)

Commercial Banks

c)

Mutual Funds

d)

Foreign Banks

5.

Which of the following is not a banking institution?

a)

State Bank of India

b)

Anand Cooperative Bank

c)

Life Insurance Corporation of India

d)

Hong Kong and Shanghai Banking Corporation

6.

There are basically how many types of assets in financial system?

a)

1

b)

2

c)

4

d)

6

7.

Land, building and machinery are example of which type of assets?

a)

Real assets

b)

Financial assets

c)

Normal assets

d)

Ficticious assets

8.

Which of the following is a type of financial asset?

a)

Term loan

b)

Real estate

c)

Machinery

d)

Inventory

9.

Which of the following financial assets represents owners fund in the compnay?

a)

Term Loans

b)

Equity Share Capital

c)

Debentures

d)

Bonds

10.

What type of financial asset typically pays fixed dividends and has priority over equity shares in asset liquidation?

a)

Equity share capital

b)

Preference share capital

c)

Bonds

d)

Debentures

11.

Which of the following financial assets is considered a debt instrument?

a)

Equity Share Capital

b)

Preference Share Capital

c)

Retained Earnings

d)

Debentures

12.

Money market deals with _____ instruments.

a)

Long term

b)

Medium term

c)

Short term

d)

All of the above

13.

What is the typical maturity period for instruments in the capital market?

a)

Less than 1 year

b)

Six months

c)

More than 1 year

d)

15 days

14.

What is the primary use of funds raised in the capital market?

a)

Short term finance

b)

Working capital

c)

Long term finance

d)

Purchase raw material

15.

In which type of financial market the return is high?

a)

Money market

b)

Capital market

c)

Commodity market

d)

Forex market

16.

TREASURY BILLS ARE ISSUED BY WHOM?

a)

MANAGEMENT

b)

COMPANY

c)

GOVERNMENT

d)

NGO

17.

WHICH SOURCE OF FINANCE HAS THE HIGHEST RETURN?

a)

SHORT TERM

b)

MEDIUM TEREM

c)

LONG TERM

d)

NONE OF ABOVE

18.

WHICH OF THE FOLLOWING IS A SOURCE OF SHORT TERM FINANCE?

a)

EQUITY

b)

PREFERENCE

c)

TRADE CREDIT

d)

HIRE PURCHASE

19.

WHICH OF THE FOLLOWING SOURCE OF FINANCE PAYS FIXED DIVIDEND?

a)

EQUITY

b)

PREFERENCE

c)

DEBENTURES

d)

BONDS

20.

WHICH OF THE FOLLOWING IS NOT A SHORT TERM SOURCE OF FINANCE?

a)

RETAINED EARNINGS

b)

LEASE

c)

BILL OF EXCHANGE

d)

ANGEL INVESTORS