ĐỀ ÔN TẬP TIỀN TỆ 2

CHAPTER 2+3
Question 1: Which financial institutions raise funds by issuing commercial paper
and stocks and bonds and use the proceeds to make loans that are particularly
suited to consumer and business needs.

a. Finance company

b. Non life insurance

c. Leasing company

d. Pension fund

Question 2: Which financial intermediaries that acquire funds at periodic intervals

on a contractual basis, provide retirement income in the form of annuities to
employees who are covered by a pension plan.

a. Finance company

b. Non life insurance

c. Leasing company

d. Pension fund

Question 3: Which financial intermediaries hold only short-term, high-quality

securities, allowing shares to be redeemed at a fixed value.

a.      Money market mutual funds

b. Leasing company

c.  Non life insurance

d. Finance company

Question 4: Money market mutual funds hold ….., allowing shares to be

redeemed ….

a.      Only short term securities; at a fixed value

b. Only long  term securities; at a floating value

c.  Only medium term securities; at a market value

d. Only long term securities; at a fixed value

Question 5: Finance companies raise funds by issuing commercial paper and

stocks and bonds and use the proceeds ….. that are particularly suited to
consumer and business needs.
a. To make debt
b. To make loans
c. To make fund
d. To buy
Question 6: How many types of finance companies? 
a. 1
b. 2
c. 3
d. 4
Question 7: Which financial intermediaries own a particular retailing or
manufacturing company and make loans to consumers to purchase items from
that company.
a. Business finance companies
b. Customer finance companies
c. Sales finance companies 
d. Pension fund
Question 8: Which financial intermediaries make loans to consumers to buy
particular items such as furniture or home appliances, to make home
improvements, or to help refinance small debts.
a. Business finance companies
b. Customer finance companies
c. Sales finance companies 
d. Pension fund
Question 9: Which financial intermediaries provide specialized forms of credit to
businesses by making loans and purchasing accounts receivable (bills owed to the
firm) at a discount
a. Business finance companies
b. Customer finance companies
c. Sales finance companies 
d. Pension fund
Question 10: Open-end funds issue shares that can be …… at any time at a price
tied to the asset value of the firm.
 a. Redeemed
b. Non Redeemed
c. Sold 
d. Bought
Question 11: Closed-end funds issue ….. shares, which are traded like common
stock. 
a. Redeemable
b. Non Redeemable
c. Sold 
d. Bought
Question 12: Closed-end funds are …. than open-end funds because their shares
are not as liquid.
a. More popular
b. Less popular
c. More
d. Less 
Question 13: Hedge funds usually require that investors commit their money for
….of time, often several years.
a. Long periods
b. Short periods
c. Medium periods
d. Periods 
Question 14: Which financial intermediaries are a special type of investment
fund, with estimated assets of more than $1 trillion?
a. Venture capital funds
b. Hedge funds
c. Money market mutual funds
d. Insurance providers
Question 15: Hedge funds also typically charge…..fees to investors.
a. Large
b. Small
c. Medium 
Question 16: Which stock that closed-end funds are traded?
a. Bond
b. Preferred stock
c. Common stock
d. Deposit certificate
Question 17: What kind of intermediary finance investment in new startup
businesses, often in the technology industry?
A.  Commercial Bank

B.  Venture capital funds

C.  Insurance company

D.  Non life insurance

Question 18:What providers make money by selling policies that pay benefits if
catastrophic events occur?

A. Commercial Bank

B.  Venture capital funds

C.      Insurance company

D.  Non life insurance

Question 19:  Why do property and casualty insurance companies hold more
liquid assets than life insurance companies?

A.  Because of greater uncertainty regarding the benefits they will have to pay
out

B.      Because of greater certainty regarding the benefits they will have to pay out

C.      Because of greater doubt regarding the benefits they will have to pay out

D.      Because of greater worry regarding the benefits they will have to pay out

Question 20: Life insurance companies, insure people against financial hazards
following a death and …….

A.      Sell fix annuity

B.      Sell deferred annuity

C.      Sell ordinary annuities

D.  Sell annuities

Question 21:  What types of financial intermediaries acquire funds from the
premiums people pay to keep their policies in effect and use them primarily to
buy corporate bonds and mortgages?
A.  Life insurance companies

B.  Commercial Bank

C.     Insurance company

D.  Non life insurance

Question 22: What is the largest holding asset of non-life insurance?

A. Government bonds
B. Debentures
C. Government bonds and debentures
D. Government bonds or debentures

Question 23: These companies insure their policyholders against loss from theft,
fire, and …..

A. Disease
B. Accidents
C. Tired
D. Unhappy

Question 24: What are the similarities of non-life insurance and life insurance?

A. Receiving funds through premiums for their policies

B. Pay monthly, quarterly or yearly recurring fees
C. Usually lasts 10 – 20 years or a lifetime.
D. Pay a one-time fee.

Question 25: Brokerage firms engage in all three securities market activities,
acting as brokers, dealers, and investment bankers.

A. Security companies
B. Insurance company
C. Commercial bank
D. Non life insurance

Question 26: ............. are financial intermediaries that acquire funds at periodic
intervals on a contractual basis. 

A. Security companies
B. Insurance company
 C. Pension funds
D. Non life insurance

Question 27: Which financial intermediaries tend to invest their funds  primarily
in long-term securities such as corporate bonds, stocks, and mortgages?

A. Security companies
B. Insurance company
C. Pension funds
D. Non life insurance

Question 28: Which financial intermediary provides retirement income in the

form of annuities to employees who are covered by the pension plan.

A. Security companies
B. Private pension funds
C. Insurance company
D. Non life insurance

Question 29: Funds are acquired by contributions from employers and/or from
…………, who either have a contribution automatically deducted from their
paycheques or contribute voluntarily.

A. Employees 
B. School-goers
C. Commuters
D. Homemaker 

Question 30: The largest asset holdings of pension funds are corporate …… and
…….

A. Treasury bonds and preferred Stock

B. Treasury bonds and stocks
C. Bonds and stocks
D. Bonds and preferred Stock

Question 31: Financial leasing Is …………………..credit granting method for

enterprises' investment projects in the purchase of machinery, equipment,
production lines and means of transport.
A. A medium and long-term
B. A medium
C. Long-term
 D. A medium and short-term

Chapter 4
1. When a company goes bankrupt, who gets paid last?
a. Bondholders
b. Shareholders
c. Creditors
d. Staff
2. What does “IPO” stand for?
a. Initial Public Offering
b. Initial Public Opening
c. Initial Public Operating
d. Initial Price Offering
3. Who becomes a part owner of the firm?
a. The creditor
b. the issuer of bond
c. The purchaser of stock
d. The seller of stock
4. Which types of financial institutions execute buy and sell stock transactions of
investors?
a. Commercial banks
b. Savings banks
c. Pension funds
d. Securities firms
5. Which are the same functions between commercial banks and finance
companies when participating in the stock market?
a. Issue stock to boost their capital base
b. Manage trust funds that usually contain stocks
c. Invest a large proportion of their premiums in the stock market
d. Place new issues of stock
6. Choose the wrong answer
 Orders always specify:
a. The security to be traded 
b. The price of the stock
c. The side of the order
d. The quantity to be traded
7. The different point between Common stock and Preferred stock
a. Common shareholders and preferred shareholders allow for significant
voting rights.
b. Common shareholders and preferred shareholders do not allow for
significant voting rights.
c. Only common shareholders allow for significant voting rights.
d. Only preferred shareholders allow for significant voting rights.
9. Which are the participants of Financial Institution on Stock Markets?
a. Commercial bank, Saving bank, Securities firms, Pension fund.
b. Commercial bank, Private company, Securities firms, Pension fund.
c. Commercial bank, Saving bank,International monetary Fund , Pension
fund.
10. How many factors to execute a trade order ?
a. 1
b. 2
c. 3
d. 4
11. What is the Best Bid in this picture

. A. 17.65
B. 17.70
C. 17.60
D. 17.50
E. 17.75
F.  19.00
G. 17.80
12. Sort the steps of Process of stock issuance in right order:
1. Developing a Prospectus
2. Allocation of IPO Shares
3. Pricing
4. Transaction
a. 1,2,3,4
b. 2,3,4,1
c. 1,3,2,4
d. 3,2,4,1
13. How many types of orders?
a. 1
 b. 2
c. 3
d. 4
14. Which is an instruction to trade at the best price currently available in the
market ?
a. Market order
b. Limit order
c. Stop order
d. Stop limit order

15. Choose the correct answer

Vietcombank (VCB) trades in the HOSE market. HOSE dealers are bidding 70.50
for VCB and offering it at 70.80. These quotes are good for 1000 shares on the bid
side and 400 shares on the ask side.
Duy submits a market order to sell 500 shares of VCB.
a. Duy buys all 500 shares for 70.50
b. Duy sells all 500 shares for 70.80
c. Duy sells all 500 shares for 70.50
d. Duy sells all 400 shares for 70.80
16. What is the price of immediacy ?
a. The bid-ask spread
b. The ask-bid spread
c. The offer price
d. The purchase price
17. Suppose that the quote is $30 bids, $36 offered. Suppose that the best estimate
of the true value of the security is $33
A market buy order would be executed at $36 for a security worth $33
What is the price of immediacy ?
a.  $33
b.  $36
c. -$3
d.  $3
18 You own ACB, which is trading at $65. You think the stock can still go higher.
So you place a sell limit order at $68.
Choose the correct answer:
a. When the stock price rise over $68, your limit order is executed
b. When the stock price rise below $65, your limit order is executed
c. When the stock price rise to $65, your limit order is executed
 d. When the stock price rise to $68, your limit order is executed
19. For a limit buy order, the limit price specifies a … 
a. Minimum price
b. Half price
c. Maximum price
d. All prices
20. Which type of order is used here ?

a. Buy limit order

b. Sell limit order
c. Buy stop order
d. Sell stop order

CHAPTER 5
1.   Bonds are_____ securities that are issued by government agencies or
corporations.

a.       Short-term debt

b.     Long-term debt

c.    Wide-term debt

d.      High-term debt

2.   Which bonds are issued by the U.S Treasury?

a.     Municipal bonds

b.     Corporate bonds

c.     Federal agency

d.   Treasury bonds

3.   How many bonds are there according to ownership structure?

a.      1

b.      2

c.     3

d.      4

4.   Investors can buy or sell Treasury bonds or buy bonds through:

a.       Contact the brokerage company

b.      Direct purchase through Financial website

c.       A&B are correct

d.      A&B are incorrect

5.   Who are the common purchasers of municipal bonds?

a.       Financial institutions, Non Financial institutions, individuals

b.      Financial institutions, individuals

c.       Financial institutions, Non Financial institutions, state college dormitory

d.      Financial institutions, Non Financial institutions, state college dormitory,

individuals
6.       Revenue bonds and general obligation bonds typically promise______
interest payments.

a.       Annual

b.      Semiannual

c.       First semiannual

d.      Last semiannual

7.       Which financial institution facilitates bond trading by matching up buyers

and sellers of bonds in the secondary market?

a.       Mutual funds

b.      Insurance companies

c.      Brokerage firms

d.     Finance companies

8.       Bids_____ be submitted on a competitive or a noncompetitive basis

a.   Can

b.   Must

c.    Should

d.   Will

9.       The bonds that finance budget deficits where state local governments
regularly spend more than they receive is:

a.    Municipal bonds

b.   Treasury bonds

c.   Corporate bonds

d.   Registered bonds
10.   Which is correct about Competitive bids?

a.    Ranked from highest to lowest

b.   Specify only a dollar amount of securities to be purchased

c.   Commonly used because many bidders want to purchase more Treasury bonds
than the maximum

d.   The Treasury uses the highest accepted bid price as the price applied to both

CHAPTER 6:
How many types of derivative securities.
a. 1
b. 2
c. 3
d. 4

2. A contract allows its holder to buy or sell a certain volume of a commodity at a

specified price and for a specified period of time.

a. Forward contracts
b. Futures contract 
c. Options contract
d. Swap contract

3. A legal arrangement in which two parties undertake to swap the cash flow of
one financial instrument of one party with the cash flow of the other’s financial
instrument over a specified period of time

a. Forward contract
b. Futures contract
c. Options contract
d. Swap contract 

4. Who is an investor in the derivatives market?

a. Hedgers
b. Speculators
c. Arbitrageurs
d. All of them
5. The financial market for derivatives, financial instruments like futures contracts
or options, which are derived from other forms of assets. What is this?
a. Derivatives market
b. Stock market
c. Bond market
d. Commercial bank
6. What is the difference between the Derivatives market and Stock market?
a. Financial leverage
b. Common form

7. An option is a contract that ____ the holder to buy (if the call option) or to sell
(if the put option).
a. Forces
b. Obligates
c. Forbids
d. Allows
8. Which markets are options contracts that can be traded on ?
a. Exchanges and OTC markets
b. Forex and Securities markets
c. Centralized and Derivative stock exchanges
d. Both a,b and c.
9. How many types of options contracts ?
a. 2
b. 3
c. 4
d. 5
10. Which are the types of options contracts ?
a. Buy option and sell option
b. Order option and refuse option
c. Call option and put option
d. Join option and quit option
11. Which standard options contracts can be exercised at any time ?
a. Asia
b. European
c. England
d. American
12. Which standard options contracts are exercised only on its own expiration
date ? 
a. Asia
b. European
c. England
d. American
13 What is the basis that distinguishes options from futures contract and futures
contract ?
a. Not a mandatory transaction
b. Highly standardized
c. Change the nature of a debt
d. Listed and traded on derivative stock exchanges
14. For call options, the higher strike price of the underlying asset, the ___ the
price of the option contract.
a. More expensive
b. Cheaper
c. Unchanged
d. Higher 
15. For put options, the higher strike-off price of the underlying asset, the ___ the
price of the option contract.
a. More expensive
b. Cheaper
c. Unchanged
d. Lower 
16. The price of the option contract is tied to the price of ___
a. Original
b. Market
c. Negotiate
d. Underlying asset
17. What is a swap contract ?
a. Allow the holder to buy or to sell a certain volume of the goods at a
specified price and for a maximum period of time.
b. An agreement between two parties in which a buyer and a seller agree to
perform a goods transaction with a specified volume , at a specified time in
the future, for a fixed price today
c. A legal agreement in which two parties undertake to swap the cash flow of
one financial instrument of one party with the cash flow of the other for a
specified period of time.
 d. An agreement that requires a party to buy or sell a good at a specified time
in the future at a predetermined price.

18. Which is the underlying asset in the swap contract ?

a. Currency
b. Interest rate
c. Security
d. Both a, b and c
19. A currency contract is a combination of ….
a. Spot and forward transactions
b. Term and no-term transactions
c. Mandatory and optional transactions
d. Local and foreign currency transactions
20. Features of interest rate swap contracts contribute to change
a. The interest rate
b. The nature of a debt
c. The currency
d. Both a, b and c
21. What is the swap contract ?
a. Optional contract
b. Forward contract
c. Unlimited contract
d. Mandatory contract