Capital Market Chapter 1 quiz 8/15/2024

The ______ is created by a financial relationship between suppliers and users of short-term funds.

• Financial Market

• Money Market

• Stock Market

• Capital Market

An organization that handle financial transaction for individuals, groups and other organization

• Financial Markets

• Private Firms

• Financial Institution

• All of the above

A market that enables suppliers and users of long-term funds to make transactions.

• Financial Market

• Money Market

• Stock Market

• Capital Market

An organized forums in which the suppliers and users of various types of funds can make transactions directly.

• Financial Markets

• Private Firms

• Financial Institution

• All of the above

It is a document which signifies a legal or binding agreement of two parties. It has a monetary value.

• Financial System

• Financial Institution

• Financial Instruments

• Financial Market

Financial system allow exchange of funds between .................. and ...................

• bank, government

• lenders, borrowers

• firms, bank

• bank, insurance company

What type of financial institution is described by the following?

A company who collects payments from customers, invests the money and pays customers back when a certain event occurs. For example, an employee pays PhilHealth a small amount each year, and PhilHealth gives the employee a big payment when she meets a road accident.

• Pension Funds Company

• Insurance Company

• Savings Bank

• Commerial Bank

These individuals receive wages or salaries, which they then use to pay for products and services. Any remaining funds are then saved by them.

• Households/Consumers

• Borrowers

• Lenders

• Government

The financial and monetary system is overseen by this organization. It is their duty to guarantee the sound and stable financial systems of their individual nations.

• Government

• Central Banks

• Commercial Bank

• Financial Institutions

A function of the financial system that enables people and companies to save money collectively and invest in a variety of assets that will appreciate in value over time.

• Liquidity

• Risk management

• Savings

• Investment decisions