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DUY TAN UNIVERSITY POP QUIZ 4 No.

International School Course: MONEY AND BANKING 1
Class: PSU-FIN 271 04X
Semester: SPRING Academic year: 2021-2022

Q1 Financial Instruments are used as:

A.Means of payment, unit of account, and transfer of risk
B.Means of payment, unit of account, and store of value
C.Means of payment, unit of account, and transfer of resources
D.Means of payment, store of value, and transfer of risk

Q2 The Role of Financial Markets are:

A.Liquidity, Information and Transfer of Resources
B.Liquidity, Banks and Risk Sharing
C.Liquidity, Information and Risk Sharing
D.All of the above

Q3 Financial Institutions are also known as financial intermediaries such as;

A.Banks, insurance companies
B.Securities firms, and pension funds
C.None of the above
D.All of the above

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 The reason financial intermediaries play such an important role in economies has to do
with all of the following except?
A. Information costs
B. Transaction costs
C. complexity of a lot of financial transactions
D. the composition of GDP.
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Q6 If the maturity of a debt instrument is less than one year, the debt is called ________?
A. short-term
B. intermediate-term
C. long-term
D. prima-term

Q7 Which of the following benefit directly from any increase in the corporation's profitability?
A. A bond holder
B. A commercial paper holder
C. A shareholder
D. A T-bill holder

Q8 Secondary markets make financial instruments more ________.?

A. Solid
B. Vapid
C. Liquid
D. Risky

Q9 Treasury bills are considered the safest of all money market instruments because there is
no risk of ________.
A. Defeat
B. Default
C. Desertion
D. Demarcation

Q10 Bonds issued by corporations are called ________ bonds.

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