1. A loan agreement is a - a. A legal document b. A Financial Instrument C. Both a legal document as well as a financial instrumente d. None 2. What is a 'security' in financial terms? 1. Money paid to secure a property 2. Financial instrument used to raise capital 3. Premium paid to insurance companies to cover against risk of theft 4. Ordinary shares of a company a. 1,2 and 34 b. 2 and 44 3 and 44 d. 2,3 and 4 C. 3. A share issued by a firm is 1. A financial instrumente 2. A part in the ownership of the firme 3. A security 4. A current asset for the firme a. 1, 2 and 34 b. All of theme 3 and 44 d. 2,3 and 4 c. 4. A 'firm' in academic literature refers to 1. An individual or sole trading businesse 2. Partnership 3. Limited companye a. Only 1 and 2 b. 1,2 and 3 C. 2and 3 d. Only 3 5. Why are limited companies the most popular form of business organisation? 1. They are separate legal entity in themselves 2. They have the benefit of continuity of existence 3. They have the ability to mobilize large scale of capital 4 - Their liability is limited a 1,3 and 4 b. 3 and 4 C All of theme d. 2,3 and 4 6. What does the limited liability' means in financial terms a. The limited companies are not allowed to borrow beyond a limit in proportion to their equity b. In case of an insurance claim they are not obliged to pay more than a pre-determined amount of money to settle the claime -0. The maximum amount which can be lost by an investor is the capital that he has invested in the company d. This term indicates that the limited companies are large corporate bodies 7. Singapore has a very efficient and effective judiciary and the society is very law abiding. Also they have one of the lowest corruption rates in the world. How do such social and political factors likely to affect the economy of Singapore? a They have significant effect - in a positive way b. They have significant impact - but in a negative way They may or may not affect the economy, it depends on the market d. They do not affect the economy at alle C. 8. Which of the following are the main characteristics of a socialist economy? 1. Government makes law and enforces law and order very strictly 2. The total production is distributed equally among all members of the society 3. The means of production are owned and managed by the government on a collective basise 1 and 3 b. Only 2 2 and 3 d. Only 3+ a. c. 9. One of the prime shopping areas in UK is Knightsbridge in London. It has a large number of shops selling luxury goods to shoppers who visit London from all over the world. Knightsbride can be classified as + 1. Priny Market 2. Retail Market 3. Spot Market 4. Foreign Exchange Markete a. 1,3 and 2 b. 3 and 2 c4 and 2 d. 1,2,3 and 4 10. The money market is the market where a. People go to take out money from their bank accounts b. Banks borrow and lend each other for a term of a year or more c. Financial intermediaries borrow and lend to each other for very short periods d. Government makes arrangements to print money