Choose the correct answer.

1. A significant reduction in barriers to entry should result in: a. Lower intensity of competitive rivalry b. Higher intensive of competitive rivalry

c. Higher industry profits

d. Lower availability of substitute

2. A basic requirement for an effective financial system is a monetary system that performs which of the following financial functions?

a. creating jobs

b. formation and transferring of money

c. storing gold and silver to back - up money

d. transferring real assets

3. Financial intermediation provides direct transfer of funds to the users.

a. True

b. False

4. The PSEi is an example of a secondary market

a. True

b. False

5. The power of suppliers will be high when

a. many producers shares industry supply

b. customers have many substitutes

c. just a few producers dominate industry supply

d. there are high barriers to entry

6. Taylor Swift's success in getting Apple to pay artists royalties on Apple Music is an example of:

a. bargaining power of suppliers

b. intensity of competitive rivalry

c. threat of substitutes

d. threat of new entrants

7. Porter's Five Forces model is essentially a model about

a. corporate culture

b. market segmentation

c. competitive rivalry

d. organizational structure

8. Low growth or declining markets are usually associated with

a. price competition and low profitability

b. High number of new entrants

c. high prices and industry profits

d. low competitive rivalry

9. An industry where the supply is concentrated in the hands of just a few suppliers

a. ready meals

b. hairdressing

c. passenger aircraft manufacture

d. garment manufacture

10. which of the following is a substitute for digital cameras?

a. smartphones

b. social media apps

c. digital televisions

d. online news channels

11. Which of these is one of Porter's Five Forces?

a. bargaining power of suppliers

b. bargaining power of government

c. market growth rate

d. threat of new legislation

12. Which of these is one of the Porter's Five Forces?

a. bargaining power of employees

b. industry operating profit margin

c. threat of substitute

d. pace of technological change