4.2.4.1 The structure of financial markets and financial asset

What function of money allows it to be universally accepted in exchange for goods and services?

• Unit of Account

• Store of Value

• Medium of Exchange

• Standard of Deferred Payment

Which of the following is included in Narrow Money (M1)?

• Time deposits

• Stocks

• Savings accounts

• Currency in circulation

What does the Capital Market primarily deal with?

• Long-term transactions

• Currency exchange

• Short-term borrowing

• Risk management

Which market is involved in the exchange of currencies?

• Money Market

• Commodities Market

• Foreign Exchange Market

• Capital Market

What is a primary role of financial markets in the economy?

• Price Stabilization

• Consumer Protection

• Government Regulation

• Resource Allocation

What describes the relationship between market interest rates and bond prices?

• Direct Relationship

• Inverse Relationship

• Proportional Relationship

• No Relationship

What type of financial instrument typically matures in less than a year?

• Mortgage-backed securities

• Stocks

• Corporate bonds

• Treasury bills

What is a characteristic of equity in a company?

• Ownership and potential dividends

• Short-term borrowing

• Fixed interest payments

• Priority claim in liquidation

Which of the following is a function of money that simplifies the process of pricing goods and services?

• Standard of Deferred Payment

• Unit of Account

• Medium of Exchange

• Store of Value