1

DUY TAN UNIVERSITY POP QUIZ 2 No.

International School Course: MONEY AND BANKING 1
Class: PSU-FIN 271 02X
Semester: SPRING Academic year: 2021-2022

Q1 Which of the following are the six parts of the financial system?
A Money, financial instruments, financial markets, banks, regulatory agencies,
central banks,
B Financial instruments, credit cards, financial instruments, regulatory agencies,
central banks,
C Financial instruments, money, financial instruments, the Security and Exchange
Commission, central banks
D Money, financial instruments, financial markets, financial institutions, regulatory
agencies, central banks

Q2 In Vietnam, The Central Bank is called:

A.SBV (The State Bank of Vietnam)
B.FED ( The Federal Reserve)
C.Both a and b
D.None of them

Q3 The Central Banks, the six parts of the of the financial system:
A.Monitor and stabilize the economy
B.Make sure that the financial system (including its instruments, markets, and
institutions) operate in a safe and reliable manner
C.Only monitor the economy
D.Only stabilize the economy

Q4 Every financial market has which of the following characteristics?

A. It determines the level of interest rates
B. It allows common stock to be traded
C. It allows loans to be made
D. It channels funds from lenders-savers to borrowers-spenders

Q5 Prices of money market instruments undergo the least price fluctuations because of
________
A. the short terms to maturity for the securities
B. the heavy regulations in the industry
C. the price ceiling imposed by government regulators
 2

D. the lack of competition in the market

Q6 Bonds issued by corporations are called ________ bonds.

A. Corporate
B. Treasury
C. Municipal
D. Commercial

Q7 Which of the following is not a goal of financial regulation?.

A. Ensuring the soundness of the financial system
B. Reducing moral hazard
C. Reducing adverse selection
D. Ensuring that investors never suffer losses

Q8 Securities are ________ for the person who buys them, but are ________ for the
individual or firm that issues them.
A. assets; liabilities
B. liabilities; assets
C. negotiable; nonnegotiable
D. nonnegotiable; negotiable

Q9 Financial markets improve economic welfare because ________.

A. they channel funds from investors to savers
B. they allow consumers to time their purchase better
C. they weed out inefficient firms
D. eliminate the need for indirect finance

Q10 Financial intermediation exists, in part, because:.

A. financial markets work so well.
B. direct finance through stocks and bonds is the dominant form of financing.
C. transaction costs of financial intermediation is always higher than direct finance.
D. the transaction costs associated with direct finance can at times be prohibitive.