Week 2 Workshop Practice

1. Which of the following is/are the examples of financial institution(s) b,c,e,g,j,k

a) Stock exchange market

b) Investment banks

c) Westpac bank

d) Bonds

e) Insurance companies

f) Loan

g) Superannuation companies

h) Foreign currency exchange market

i) Stocks

j) Financial service companies

k) Credit unions

2. Which of the following is (are) the example(s) of financial instrument(s) d,i,f,q,r

a) Stock exchange market

b) Investment banks

c) Westpac bank

d) Bonds

e) Insurance companies

f) Loans

g) Superannuation companies

h) Foreign currency exchange market

i) Stocks

j) Money markets

k) Financial service companies

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 l) Credit unions

m) Bond markets

n) Home loan markets

o) Housing markets

p) Houses

q) Commercial papers

r) Derivatives ( futures, forwards, options)

3. Which of the following is (are) the example(s) of the financial market(s). a,d,h,i,m,j,n,o.

ahjmn

a) Stock exchange market

b) Investment banks

c) Westpac

d) Bonds

e) Insurance companies

f) Loan

g) Superannuation companies

h) Foreign currency exchange market

i) Stocks

j) Money markets

k) Financial service companies

l) Credit unions

m) Bond markets

n) Home loan markets

o) Housing markets

4. Which of the following markets did Alibaba's IPO take place in a,d

a) Primary markets

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 b) Secondary markets

c) Money markets

d) Capital markets

5. Which of the following markets did BHP company issue its 3-month commercial paper in
e,d

a) Primary markets

b) Secondary markets

c) Retail markets

d) Wholesale markets

e) Money markets

f) Capital markets

g) Exchange-traded markets

h) Over-the-counter markets

6. Which of the following markets did the Australian government issue its 3-year bonds in b,d

a) Primary markets

b) Secondary markets

c) Money markets

d) Capital markets

7. Choose from the following markets in which Lisa took a 30-year home loan from ANZ bank
(you can have multiple answers) a, d

a) Primary markets

b) Secondary markets

c) Money markets

d) Capital markets

e) Retail market

f) wholesale markets

g) Exchange-traded markets

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 h) Over-the-counter markets

8. Which of the following transactions belong (s) to direct financing (you can have multiple
answers) e,

a) BHP issued 3-month commercial papers in the money market to raise the fund to make its
working capital

b) Victoria state government issued 3-year bonds to upgrade the infrastructure in Melbourne

c) Ali baba's IPO conducted by 4 major investment banks

d) Mary borrowed $1 million from ANZ bank to buy a new house

e) Mary borrowed $500,000 from her rich brother to buy an apartment in the city

9. Which investment project below has a higher return? (you can have multiple answers)

 Investment A: earned $20

 Investment B: earned $80

a) Investment A

b) Investment B

c) Unable to decide

10. Which investment project below has a higher return? (you can have multiple answers)

 Investment A: invested $1000 and earned $20

 Investment B: Invested $1000 and earned $80

a) Investment A

b) Investment B

c) Unable to decide

11. Which investment project below has a higher rate of return /yield (you can have multiple
answers)

 Investment A: upfront cost of $1000 and then receive $1020 three months later

 Investment B: upfront cost of $1000, and then receive $1080 one year later

a) Investment A

b) Investment B

c) Same

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12. Distinguish between direct and intermediated financing.
13. What are the benefits of intermediation? Discuss the key benefits by providing examples.
14. What are the advantages and disadvantages of direct financing? Provide examples.
15. Define and distinguish between money and capital markets. Provide examples
16. Distinguish between primary and secondary markets by providing examples.