1) Which of the following are deemed to be net suppliers of funds to Financial Institutions? a) Individuals b) Businesses c) Governments d) Non-Profit Organizations 2) Which of the following serves as a platform where suppliers of funds and demanders of funds can transact business directly? a) Financial Intermediary b) Financial Market c) Banks d) Mutual Funds 3) The act of a sale of new security issue (typically bonds or preferred stock) directly to an investor or group of investors is known as: a) Public Offering b) Private Placement c) Auction d) Clearance Sale 4) The market where the corporate/govt issuer is directly involved in the transaction and receives direct benefit from the issue is known as: a) Primary Market b) Secondary Market c) Auction Market d) Dealer Market 5) The following are examples of securities traded in the money market EXCEPT for:- a) US Treasury-bills b) US Treasury-bonds c) Commercial paper d) Negotiable certificates of deposits 6) Market where corporations and governments typically issue bonds denominated in dollars and sell them to investors located outside the US is known as: a) Eurobond Market b) Foreign Bond Market c) International Equity Market d) Money Market 7) Long term debt instruments used by business and government to raise large sums of money, generally from a diverse group of lenders are generally known as: a) Common Stocks b) Bonds c) Preferred Stocks d) Bank Loan 8) As a key participant in financial transactions, individuals are A) net demanders of funds because they save more money than they borrow B) net users of funds because they save less money than they borrow C) net suppliers of funds because they save more money than they borrow D) net purchasers of funds because they save more money than they borrow 9) Government is typically a A) net provider of funds because it borrows more than it saves B) net demander of funds because it borrows more than it saves C) net provider of funds because it can print money at will D) net demander of funds because it saves more than it borrows a) Common Stocks b) Bonds c) Preferred Stocks d) Bank Loan 8) As a key participant in financial transactions, individuals are A) net demanders of funds because they save more money than they borrow B) net users of funds because they save less money than they borrow C) net suppliers of funds because they save more money than they borrow D) net purchasers of funds because they save more money than they borrow 9) Government is typically a A) net provider of funds because it borrows more than it saves B) net demander of funds because it borrows more than it saves C) net provider of funds because it can print money at will D) net demander of funds because it saves more than it borrows 10) Which of the following serves as an intermediary channeling the savings of individuals, businesses, and governments into loans and investments? A) financial institutions B) financial markets C) Securities and Exchange Commission
