1. Finance companies specialize in making loans to relatively ....

individuals and
businesses

A. low-risk B. high-risk C. rich D. poor

2. Which of the following is NOT a depository institution ?

A. Mutual Saving Banks

B. Credit Union

C. Investment Bank

D. Commercial Bank

3. Pension funds receive contributions from ... of companies and governments. •

A. employees B. banks C. finance companies D. customers

4. Which of the following is NOT an investment intern ?

A. Pension fund B. Mutual fund C. Finance company D. Hedge fund

5. Pension funds receive contributions from ... of companies and governments.

A. employees B. customers C. finance companies D. banks

6. Insurance companies carry out the intermediation function by gathering ... and
investing them in the capital markets

A. deposits B. loans C. salaries D. premiums

7. Which of the following is the main source of funds of credit unions? * thrift

A. issue bonds B. All of these C. issue stocks D. issue deposits

8. Which of the following is NOT a depository institution ?

A. Mutual Saving Banks B. Investment Bank

C. Commercial Bank D. Credit Union

9. Which of the following is NOT a contractual savings institution ?

A. Life insurance company

B. Finance company

C. Fire insurance company

D. Pension fund
10. Which of the following is NOT a feature of public finance?

A. Social benefits

B. Associated with state ownership

C. Wide operation scope

D. Performance efficiency can be directly evaluated

11. Which of the following can be described as direct finance?

A. You borrow $5000 from your parents

B. You deposit money in a bank

C. You take out a loan from a commercial

D. You buy shares in a mutual fund

12. Mr. T purchasing new Iphone with his credit card is an example of the function of
money

A. Specialization

B. Unit of account

C. Store of value

D. Medium of exchange

13. Which of the following is included in financial market

A. Debt market

B. Stock market

C. Labor market

D. A&B

14. …………… is the imbalance in information between two parties of a transaction

A. Adverse selection
B. None of these
C. Moral harvard
D. Asymmetric information

15. Which one of the following is classified as a tangible fixed asset?

A. Production equipment
B. Patent
 C. cash
D. Accounts receivable

16. Long term debt has a maturity that is …….

A. between five and ten years

B. one year or longer
C. less than a year
D. between two and ten years

17. Treasury Bills(T-Bills) is short term debt instruments, issued by….

A. Governments
B. Central banks
C. Commercial banks
D. Enterprises

18. What the market is not belong to financial market?

A.Capital market B.Debt market = bond market

C.Stock market D.Labor market

19. Which of the following factors is effect on the interest rate according to the
demand funds?

A.Gov budget expansion B.Gov budget deficit

C.Expected income D.All of these

20. ".... is a financial market in which new issue of a security are sold to initial buy

A. Bond market B.Money market C.Primary market D.Debt market

21. Which of the following can be described as direct finance?

A. You take out a loan from a bank

B. You borrow 10 million VND from a friend
C. You buy a contract from an insurance company
D. You take out a loan from a finance company

22. In order of duration of financial instruments, which of the following are divided in
the financial market ?

A. Money and capital market

B. Labor and bond market
C. Bond and Stock market
D. Banking and stock market

23. Financial markets are markets in which funds are transferred from those who have
……..(savers/ lenders) to those who have a …….(investors, borrowers)
 A. Excess funds - shortage
B. Shortage - Excess funds
C. Buyer -Seller
D. Seller - Buyer

24. Which equality is the basis for the balance sheet?

A. None of these
B. Fixed assets = Stockholders equity + current assets
C. Assets = Liabilities + Stockholders Equity
D. Fixed assets= liabilities + Stockholders Equity

25. Which of the following is a direct tax?

A. individual income tax

B. A&C
C. Corporate income tax
D. Excise tax = indirect tax

26. Which one of the following assets is generally the most liquid?

A. buildings
B. Accounts receivable
C. Inventory
D. equipment

27. Financial markets promote economic efficiency by …………..

A. reducing investment
B. creating inflation
C. channeling funds from borrowers to lenders
D. channeling funds from lenders to borrowers

28. Decreasing transactions costs of selling an asset make the asset?

A. more liquid
B. less valuable
C. less liquid
D. more valuable

29. Of money's three functions, the one that distinguishes money from other assets is
its function as a

A) store of value.
B) unit of account.
C) standard of deferred payment.
D) medium of exchange.
 Đề kiểm tra năm 2023
1. The order of money evolution?

Commodity money, check, fiat money, e-money

Commodity money, fiat money, e-money, check
Fiat money, check, e-money, commodity money
Commodity money, fiat money, check, e-money
2. Which is not one of the components of financial system? *

Lender
Borrower
Financial market
Financial managers
3. Which is not a type of tax *

Wealth tax
Consumption tax
Income tax
Travel tax
4. Corporate income tax is? *

Direct tax
Indirect tax
Consumption tax
Value added tax
5. Which statement is NOT true about investment intermediaries? *

They take deposit

They do not take deposit
 They includes mutual funds
None of the above
6. Main liability of commercial bank? *

Deposit
Borrowing from other banks
Borrowing from central bank
Equity
7. Relationship between assets, liabilities and equity in corporate finance? *

Liabilities = Assets - Equity

Liabilities = Assets + Equity
Assets = Liabilities - Equity
None of the above
8. When company wants to raise fund, they consider between issuing bond or stock.
What is the advantage of bond over stock? *

The payment for bond holders is higher than the payment for stock holders
The payment for bond holders is low than the payment for stock holders
Bond holders do not have voting right
None of the above
9. Corporate income = ? *

Revenue - expense
Expense - revenue
Revenue + expense
None of the above
10. A newly issued Treasury Bill which is due in 270 days will be traded in which types
of financial market? *

Primary market and money market

 Secondary market and capital market
Primary market and capital market
Secondary market and money market
11. If the interest rate is 6%, what is the present value of a security that pays you
$1,123.60 two years from now?

12. If you expect the inflation rate to be 5% next year and a one-year loan has nominal
interest rate of 7%, then how much is the real interest rate?

r = i - expected inflation= 7% - 5% = 2 %

13. Your company have just borrowed 2.5 billion VND from VCB for the period of five
months, and the interest rate is 12% per annum. How much will you have to pay when
the loan is due?

14. You are offered 4 choices for your $ 50,000 deposit: (1) Interest rate of 16% p.a.,
payable per year; (2) Interest rate of 15.5 % p.a., payable per half year; (3) Interest rate
of 15 % p.a., payable per quarter; (4) Interest rate of 12 % p.a., payable per month.
Which one is the best choice?

(1). effective IR = (1 + i/n) ^ n - 1 = (1+ 16%/1)^1 -1 = 16%

(2) effective IR = (1 + i/n) ^ n - 1 = (1+15.5%/2) ^2 -1 = 16.1%

(3) effective IR = (1 + i/n) ^ n - 1 = (1+15%/4)^4 -1 = 15,865%

(4) effective IR = (1 + i/n) ^ n - 1 = (1+ 12%/12)^12 -1 = 12,683%

→ (2) is the best choice because we deposit , we choose the highest IR

15. You want to borrow $1000 to buy new laptop, you expect to repay in 3 years. There
are 2 offers for you: (1) fixed-payment loan: yearly payment is $400 payable at the end
of each year for a period of 3 years; (2) simple loan: pay $1300 at the end of 3rd year.
Which offer should you choose? (Hint: which offer has lower yield to maturity?) *

16. A 5-year coupon bond with face value of $100, coupon rate of 10% per annum;
coupon payment paid at the end of each year. Issue date is Jan 1st, 2019 and due date is
Jan 1st, 2024. This bond was bought on Jan 1st, 2022 by Mr.T in the secondary market
with price of $90. Calculate the yield to maturity? *

17. Same bond as before (question 16), calculate rate of return (RET) if Mr.T sells this
bond on Jan 1st, 2023 with price of 100? *

18. You want to buy a discount bond (at due date, you will receive face value of discount
bond, and no coupon payment during the time you hold the bond). There are 2 offers: (1)
a discount bond with face value of $1000, due in 1 year, and bought at $900; (2) a
discount bond with face value of $1200, due in 2 year, and bought at $1000 (Hint:
Compute the yield to maturity) *

Offer (1)
Offer (2)
Offer (1) is as good as offer (2)
Can not choose because there is not enough information.