BBMF2044 MONEY & CAPITAL MARKET 1-5

What is the main purpose of a financial system?

• To print money

• To collect taxes

• To move funds from savers to borrowers

• To store gold

What is financial intermediation?

• Borrowing money from friends

• Saving money at home

• Channeling funds from savers to borrowers

• Spending money on goods

Which of the following is a financial intermediary?

• Petronas

• Maybank

• Tesco

• KFC

What distinguishes the financial system from financial intermediaries?

• Size of office

• Scope and function

• Product type

• Staff number

Which financial market deals with short-term instruments?

• Capital market

• Money market

• Primary market

• Derivatives market

What is an example of a capital market instrument?

• Treasury bill

• Fixed deposit

• Sukuk

• Cheque

Where are new securities issued?

• Secondary market

• Forex market

• Primary market

• Commodity market

Which market provides liquidity for investors?

• Primary market

• Secondary market

• Money market

• Capital market

What is the purpose of the derivatives market?

• To buy vegetables

• To manage risk

• To open savings account

• To exchange passports

A glove exporter uses which financial market to manage currency risk?

• Capital market

• Primary market

• Derivatives market

• Insurance market