Financial markets and institutions Select one a involve the movement of huge flows of money b affect the profits of businesses c affect the types of goods and services produced in an economy d all of the above Clear my choice Question 2 Banks are regulated for several reasons Which of the following is not a true statement Select one a To achieve social goals b The protection of depositors c To reduce the risk of large scale failures d To avoid adverse impact on the level of economic activity e To ensure that government's level of taxation on the industry is as high as possible Question 3 Central Banks perform all of the following functions except Select one a Lending directly to the general public b Determining key short term interest and or discount rates c Issuing directives to banks and other financial institutions d Undertaking open market operations e Lender of last resort Clear my choice Question 4 Management's task is to balance the profit objectives of the shareholders with pressure from non shareholders groups, in order to determine strategic targets of the business Select one a True b False Clear my choice Question 5 Risk management in banking includes all of the following True or False a)Credit risk b)Interest rate risk and Liquidity risk c)Price, compliance and operational risk d)Foreign exchange, strategic and reputational risk Select one a True b False Clear my choice Question 6 The following represent the main principles of insurance except Select one a Fundamental risk b Insurable interest c Pooling of risk d Proximate cause e Utmost good faith Clear my choice Question 7 The following statements include a description of strategic planning, except Select one a Decision on the objectives of the organisation b Utilisation of the resources to attain the objectives c The firing of management and staff d The policies that are implemented to the acquire, use and dispose of resources e Changes in the objectives of the organisation Clear my choice Question 8 Which is not true The Role of regulators is to ensure banks are Select one a Chartered licensed b Supervised c Taken over by another when not sound d Regulated e Examined Clear my choice Question 9 Banks are required to comply with the directives of Central Banks Which of the below is not a directive of the Central bank Select one a Recommendations from safety and soundness examinations b Providing monthly, quarterly and annual statistics c Sharing the profits of the institution with the Central bank d Compliance with Cease and desist orders e Compliance with Memorandum of understanding Clear my choice Question 10 Which of the following statement no not aptly describe the functions of a commercial bank Select one a They directly manage non financial commercial institutions b Operate for profit c Engage in lending activities d Accept demand deposits e Commercial banks are owned by shareholders Credit Unions are not controlled by its members but are owned and operated for the purpose of promoting frugality, granting loans at realistic rates and making available other financial services to its members Select one True False Question 12 Insurance is an arrangement by which one party (the insurer) promises to pay another party (the insured or policy holder) a sum of money if something happens, which causes the insured to suffer a financial loss Select one True False Question 13 Risk can be classified as pure or speculative Which one of the following is the best example of a speculative risk a Acquiring a new television b Buying a new personal vehicle c Investing in shares of stock d Purchasing an insurance policy Clear my choice Question 14 Which tool is used in strategic planning to assess an organization's internal strengths and weaknesses and external opportunities and threats a SWOT analysis b needs assessment c balanced scorecard d PEST analysis Clear my choice Question 15 Not yet answered Marked out of 1 00 Flag question Question text An economy can be described as a system in which people make financial choices based on limited resources Select one True False Question 16 Marketing management is the analysis, planning, implementation and control of programs designed to create, build, and maintain mutually beneficial exchanges and relationships with target markets for the purpose of achieving organisational objectives Select one True False Question 17 Individuals and businesses that hold deposits in banks are called Select one a bondholders b depositors c debt holders d policyholders Clear my choice Question 18 Money is generally defined as Select one a only notes and coins b anything that is generally accepted in payment for goods and services or in the repayment of debt c a risk free store of spending power d all of the above Clear my choice Question 19 What is the purpose of taxation Select one a To raise revenue to meet expenditure b To lessen the inequality of incomes c To control economic activity d All of the above Question 20 Which of the following assets is most liquid Select one a Passbook for a savings account b Gold bars c Shares of common stock d 2 Year Treasury Bonds Which of the following is not the role of a bank as financial intermediary Select one a To assist government in the execution of economic policy b To make loans to individuals and businesses c To aid in the creation of credit d To accept deposit funds from individuals and institutions Clear my choice Question 22 Not yet answered Marked out of 1 00 Flag question Question text Select the most accurate and comprehensive choice Financial intermediaries can be a Building Societies b Credit Unions c Financial Advisor or Broker d A and B e A, B and C Clear my choice Question 23 Not yet answered Marked out of 1 00 Flag question Question text Each of the following can accurately be defined as follow M2 Answer 1Choose Currency in the hands of the public, statutory reserves held with the Central Bank and banks' cash reservesCurrency held outside the banking system and current account deposit liabilities of commercial banks held for transaction purposes M1 short term (usually one year and under) savings and time deposits, certificate of deposits and foreign currency deposits and repurchase agreements M1 Answer 2Choose Currency in the hands of the public, statutory reserves held with the Central Bank and banks' cash reservesCurrency held outside the banking system and current account deposit liabilities of commercial banks held for transaction purposes M1 short term (usually one year and under) savings and time deposits, certificate of deposits and foreign currency deposits and repurchase agreements MO Answer 3Choose Currency in the hands of the public, statutory reserves held with the Central Bank and banks' cash reservesCurrency held outside the banking system and current account deposit liabilities of commercial banks held for transaction purposes M1 short term (usually one year and under) savings and time deposits, certificate of deposits and foreign currency deposits and repurchase agreements Question 24 The conversion of a barter economy to one that uses money a Does not increase economic efficiency b Increases efficiency by reducing the need to exchange goods and services c Increases efficiency by reducing the need to specialize d Increases efficiency by reducing transactions costs Clear my choice Question 25 Dennis notices that jackets are on sale for $99 In this case money is functioning as a a unit of account b medium of exchange c payments system ruler d store of value Question 26 Mr Plumber as , as an investment manager , has to undertake the following considerations when creating a portfolio a Identify a suitable strategy active or defensive b Measure the portfolio performance or results c Identify relevant objectives and constraints d A, B and C e A and B Question 27 Long term financial resources are usually given in the form of equity capital and long term credit, often in the form of bonds The proportion of these elements constitutes the company's capital structure Short term funding or working capital is mostly provided by banks, either by way of a line of credit or overdraft Select one True False Question 28 A short term debt is called a current liability Short term debt does not represent loans and other obligations that must be repaid within one year Long term debt is debt that does not have to be repaid within one year Select one True False Capital markets are financial markets for long term debts and for equity shares Capital markets are financial markets Answer 1Choose for a company that is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date for debt securities that pay off in the short term (usually less than one year) for long term debts and for equity shares Debt represents an obligation Answer 2Choose for a company that is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date for debt securities that pay off in the short term (usually less than one year) for long term debts and for equity shares Money markets are those financial markets Answer 3Choose for a company that is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date for debt securities that pay off in the short term (usually less than one year) for long term debts and for equity shares Question 30 Securitization Securitization Answer 1Choose investments which are managed with careful attention being paid given to financial risk management to control risk loans placed in an income generating pool against which securities are issued in order to raise new fundsis setting aside a group of income generating assets and issuing securities against them in order to raise new funds Financial assets are Answer 2Choose investments which are managed with careful attention being paid given to financial risk management to control risk loans placed in an income generating pool against which securities are issued in order to raise new fundsis setting aside a group of income generating assets and issuing securities against them in order to raise new funds Securitized assets are Answer 3

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Financial markets and institutions Select one: a. involve the movement of huge flows of money b. affect the profits of businesses c. affect the types

Financial markets and institutions

Select one:

involve the movement of huge flows of money

affect the profits of businesses

affect the types of goods and services produced in an economy

all of the above

Clear my choice

Question2

Banks are regulated for several reasons. Which of the following is not a true statement?

Select one:

To achieve social goals

The protection of depositors

To reduce the risk of large scale failures

To avoid adverse impact on the level of economic activity

To ensure that government's level of taxation on the industry is as high as possible.

Question3

Central Banks perform all of the following functions except:

Select one:

Lending directly to the general public

Determining key short term interest and or discount rates

Issuing directives to banks and other financial institutions

Undertaking open market operations

Lender of last resort

Clear my choice

Question4

Management's task is to balance the profit objectives of the shareholders with pressure from non-shareholders groups, in order to determine strategic targets of the business.

Select one:

True

False

Clear my choice

Question5

Risk management in banking includes all of the following: True or False

a)Credit risk

b)Interest rate risk and Liquidity risk

c)Price, compliance and operational risk

d)Foreign exchange, strategic and reputational risk.

Select one:

True

False

Clear my choice

Question6

The following represent the main principles of insurance except:

Select one:

Fundamental risk

Insurable interest

Pooling of risk

Proximate cause

Utmost good faith

Clear my choice

Question7

The following statements include a description of strategic planning, except:

Select one:

Decision on the objectives of the organisation

Utilisation of the resources to attain the objectives

The firing of management and staff.

The policies that are implemented to the acquire, use and dispose of resources

Changes in the objectives of the organisation

Clear my choice

Question8

Which is not true? The Role of regulators is to ensure banks are:

Select one:

Chartered /licensed

Supervised

Taken over by another when not sound.

Regulated

Examined

Clear my choice

Question9

Banks are required to comply with the directives of Central Banks.

Which of the below is not a directive of the Central bank?

Select one:

Recommendations from safety and soundness examinations

Providing monthly, quarterly and annual statistics.

Sharing the profits of the institution with the Central bank

Compliance with Cease and desist orders

Compliance with Memorandum of understanding

Clear my choice

Question10

Which of the following statement no not aptly describe the functions of a commercial bank?

Select one:

They directly manage non financial commercial institutions

Operate for profit

Engage in lending activities

Accept demand deposits.

Commercial banks are owned by shareholders

Credit Unions are not controlled by its members but are owned and operated for the purpose of promoting frugality, granting loans at realistic rates and making available other financial services to its members.

Select one:

True

False

Question12

Insurance is an arrangement by which one party (the insurer) promises to pay another party (the insured or policy holder) a sum of money if something happens, which causes the insured to suffer a financial loss.

Select one:

True

False

Question13

Risk can be classified as pure or speculative.

Which one of the following is the best example of a speculative risk?

Acquiring a new television

Buying a new personal vehicle

Investing in shares of stock

Purchasing an insurance policy

Clear my choice

Question14

Which tool is used in strategic planning to assess an organization's internal strengths and weaknesses and external opportunities and threats?

SWOT analysis

needs assessment

balanced scorecard

PEST analysis

Clear my choice

Question15

Not yet answered

Marked out of 1.00

Flag question

Question text

An economy can be described as a system in which people make financial choices based on limited resources

Select one:

True

False

Question16

Marketing management is the analysis, planning, implementation and control of programs designed to create, build, and maintain mutually beneficial exchanges and relationships with target markets for the purpose of achieving organisational objectives.

Select one:

True

False

Question17

Individuals and businesses that hold deposits in banks are called

Select one:

bondholders

depositors

debt holders

policyholders

Clear my choice

Question18

Money is generally defined as:

Select one:

only notes and coins.

anything that is generally accepted in payment for goods and services or in the repayment of debt.

a risk-free store of spending power

all of the above

Clear my choice

Question19

What is the purpose of taxation?

Select one:

To raise revenue to meet expenditure

To lessen the inequality of incomes

To control economic activity

All of the above

Question20

Which of the following assets is most liquid

Select one:

Passbook for a savings account

Gold bars

Shares of common stock

2-Year Treasury Bonds

Which of the following is not the role of a bank as financial intermediary?

Select one:

To assist government in the execution of economic policy

To make loans to individuals and businesses

To aid in the creation of credit

To accept deposit funds from individuals and institutions

Clear my choice

Question22

Not yet answered

Marked out of 1.00

Flag question

Question text

Select the most accurate and comprehensive choice.

Financial intermediaries can be:

Building Societies

Credit Unions

Financial Advisor or Broker

A and B

A, B and C

Clear my choice

Question23

Not yet answered

Marked out of 1.00

Flag question

Question text

Each of the following can accurately be defined as follow

M2=	Answer 1Choose...Currency in the hands of the public, statutory reserves held with the Central Bank and banks' cash reservesCurrency held outside the banking system and current account deposit liabilities of commercial banks held for transaction purposes.M1 + short-term (usually one year and under) savings and time deposits, certificate of deposits and foreign currency deposits and repurchase agreements
M1=	Answer 2Choose...Currency in the hands of the public, statutory reserves held with the Central Bank and banks' cash reservesCurrency held outside the banking system and current account deposit liabilities of commercial banks held for transaction purposes.M1 + short-term (usually one year and under) savings and time deposits, certificate of deposits and foreign currency deposits and repurchase agreements
MO=	Answer 3Choose...Currency in the hands of the public, statutory reserves held with the Central Bank and banks' cash reservesCurrency held outside the banking system and current account deposit liabilities of commercial banks held for transaction purposes.M1 + short-term (usually one year and under) savings and time deposits, certificate of deposits and foreign currency deposits and repurchase agreements

Question24

The conversion of a barter economy to one that uses money

Does not increase economic efficiency.

Increases efficiency by reducing the need to exchange goods and services.

Increases efficiency by reducing the need to specialize

Increases efficiency by reducing transactions costs.

Clear my choice

Question25

Dennis notices that jackets are on sale for $99. In this case money is functioning as a ________.

unit of account

medium of exchange

payments-system ruler

store of value

Question26

Mr. Plumber as , as an investment manager , has to undertake the following considerations when creating a portfolio.

Identify a suitable strategy: active or defensive

Measure the portfolio performance or results.

Identify relevant objectives and constraints

A, B and C

A and B

Question27

Long term financial resources are usually given in the form of equity capital and long-term credit, often in the form of bonds. The proportion of these elements constitutes the company's capital structure. Short-term funding or working capital is mostly provided by banks, either by way of a line of credit or overdraft.

Select one:

True

False

Question28

A short-term debt is called a current liability. Short-term debt does not represent loans and other obligations that must be repaid within one year. Long-term debt is debt that does not have to be repaid within one year

Select one:

True

False

Capital markets are financial markets--- for long-term debts and for equity shares.

Capital markets are financial markets-	Answer 1Choose...for a company that is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date.for debt securities that pay off in the short-term (usually less than one year).for long-term debts and for equity shares.
Debt represents an obligation-	Answer 2Choose...for a company that is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date.for debt securities that pay off in the short-term (usually less than one year).for long-term debts and for equity shares.
Money markets are those financial markets -	Answer 3Choose...for a company that is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date.for debt securities that pay off in the short-term (usually less than one year).for long-term debts and for equity shares.

Question30

Securitization

Securitization -	Answer 1Choose...investments which are managed with careful attention being paid / given to financial risk management to control risk.loans placed in an income generating pool against which securities are issued in order to raise new fundsis setting aside a group of income generating assets and issuing securities against them in order to raise new funds.
Financial assets are-	Answer 2Choose...investments which are managed with careful attention being paid / given to financial risk management to control risk.loans placed in an income generating pool against which securities are issued in order to raise new fundsis setting aside a group of income generating assets and issuing securities against them in order to raise new funds.
Securitized assets are-	Answer 3