Question5

The payments function of the financial system is designed to provide a means to store purchasing power until needed at a future date for spending on goods and services.

True

False

QUESTION 6

The ____ enables the trading of contracts that grant the RIGHT to buy or sell certain securities at pre-specified prices within a certain time.

Options market

Forward market

Futures market

Spot market

QUESTION 7

1. The financial system and financial markets are responsible for providing which of the following services?

Credit services

Payment services

Liquidity

Facilitating the flow of savings

All of the above

QUESTION 8

1. The market for trading newly issued securities is known as the:

money market

cash market

spot market

primary market

open market

QUESTION 9

1. Trading in securities previously issued (i.e. existing issues) takes place in the:

		open market
		secondary market
		primary market
		negotiated market
		capital market