FIBA $686$ : FINANCIAL SERVICES

FINAL EXAM PRACTICE QUESTIONS

CLOSED BOOK EXAM

FIVE QUESTIONS

How is money created?

Who approves the payment of dividends?

What are short$-$term debt instruments?

When a company goes into liquidation common

stockholders are the first to get paid followed by the bond

holders than the preferred stockholders. This statement is

incorrect. State the correct order.

What is the primary stock market?

The following statement is not true. Gold, diamond and

silver are traded in the bond market. In which market are

they traded?

Is an unregistered SUSU CLUB considered a financial

intermediary. Explain your response.

What digital currencies are powered by blockchain

technology?

List three common types of equity instruments.

Explain your understanding of this statement. $"$It is highly

improbable that the savings of $($non$-$financial$)$ economic

units will be matched by desired investment"

A committee at the Ministry of Finance determines the

Reserved requirement rate. True or false

A budget surplus is represented by the following equation:

I. $Is$ this equation correct?

Net ultimate lenders are financial economic units that

generate funds that are available for investors. This

statement $is$ incorrect. State the correct version $of$ this

statement.

$Of$ the four $sectorsof$ the economy that $we$ studied, $in$

which sector will you place unincorporated businesses such

$as$ farmers, retailers and professional partnerships?

$OF$ THE VARIOUS CATEGORIES $OF$ FINANCIAL

INTERMEDIARIES WHICH ONES DEALS WITH

ETF'S $(EXCHANGE$ TRADED FUNDS?$)$

WHY DOES THE CENTRAL BANK CONSOLIDTE

ALL $OF$ THE BALANCE SHEETS $OF$ ALL THE

FINANCIAL INTERMIARIES $AT$ THE END $OF$ EACH

MONTH?

ACCORDING $TO$ YOUR TEXT BOOK, HEDGE

FUNDS ACCEPT FUNDS FROM WHAT

INDIVIDUALS, SECTORS AND INSTITUTIONS?

The key interest rate used $by$ the central bank $is$ always

higher than the the lending rate used $at$ the commercial

banks. True $or$ false?

Which fund trades only once a day after the market

closes?

Why are derivatives not technically classified $as$ financial

instruments?

How $is$ the Central Bank funded?

Before a company makes a dividend declaration

statement, the shareholders

have $to$ agree. True $or$ False.

the book refrence: Financial System: An introduction