1. The long-term demands of the firm are one of the goals of the money market.

FALSE
2. In many developing countries, SMEs are a significant part of the economy. Access to
capital markets can help their growth, increase job opportunities, production, and
economic undevelopment. FALSE
3. The primary market entails the trading of the securities among investors, ensuring their
liquidity. FALSE
4. In this Perfect Capital Market core assumption, there are no institutions involve such as
bank. NO TRANSACTION FEE
5. What is the main objective of investors in the Capital Market? Generating returns on
their investments

6. It is a section of the financial market where short-term securities are lent and borrowed.
MONEY MARKET
7. In the secondary market securities are initially generated and presented by entities to
secure capital. FALSE
8. Is it true that in PCM, information is not accessible? NOT TRUE
9. It is described as a structured setting where buyers and sellers of different kinds of
funds can conduct direct business. FINANCIAL MARKET
10. What are entities that offer securities like stocks or bonds to raise capital known as in
the Capital Market? MARKET REGULATORS
11. What is the role of depositories in the Capital Market? Safeguarding securities in
electronic form
12. In PCM, people have influence to market price FALSE
13. "A working individual in the Philippines allocates a portion of their savings into a mutual
fund, which in turn invests in a diversified mix of stocks and bonds. Through
involvement in the capital market, this person realizes superior returns on their savings
in contrast to what traditional bank accounts offer." This encourages SAVINGS
MOBILIZATION
14. If you buy a government bond when it's initially issued and later sell it to someone else
before it matures, you're participating in the secondary market for bonds. TRUE
15. Developing countries often face no challenges in accessing long-term financing through
traditional banking systems, and capital markets do not bridge any gap since
businesses cannot issue long-term bonds and stocks. FALSE