FINANCIAL MARKET AND INSTITUTION

Which is NOT the function of financial markets and intermediaries?

• Transfering resources across time and space.

• Risk transfer and diversification

• The payment mechanism

• Safety and assurance

Investor can buy shares in a private corporation.

• True

• False

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

• True

• False

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

• Capital

• Money

• Derivative

• Security Market

_______ instruments are also called fixed-income instruments.

• Debt

• Equity

• Derivative

• All of the answers

A financial institution:

• raises financing by selling shares.

• is a kind of financial intermediary.

  
  

• simply pools and invests savings.

• invests primarily in commodities.

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

• 
• 
•