FINANCIAL INSTITUTION & MARKETS

GROUP 10

Q 1 : In primary markets, first time issued shares to be publicly traded, in stock markets is
considered as

A. traded offering
B. public markets
C. issuance offering
D. initial public offering

Q 2 Transaction cost of trading of financial instruments in centralized market is classified as

A. flexible costs
B. low transaction costs
C. high transaction costs
D. constant costs

Q 3 : Stocks or shares that are sold to investors without transacting through financial institutions
are classified as

A. direct transfer
B. indirect transfer
C. global transfer
D. pension transfer

Q 4: Type of financial security which have linked payoff to another issued security is classified
as

A. linked security
B. derivative security
C. payable security
D. non-issuing security
Q 5: In primary markets, property of shares which made it easy to sell newly issued security is
considered as

A. increased liquidity
B. decreased liquidity
C. money flow
D. large funds

Q 6: Depository institutions such as thrifts include

A. savings associations
B. savings banks
C. credit unions
D. all of the above

Q 7: Money market where debt and stocks are traded and maturity period is more than a year is
classified as

A. shorter term markets

B. capital markets
C. counter markets
D. long-term markets

Q 8 : Example of derivative securities include

A. swap contract
B. option contract
C. futures contract
D. all of the above
Q 9: In foreign financial markets, growth is represented by factors such as

A. savings in foreign countries

B. investment opportunities
C. accessible information
D. all of the above

Q 10: Authority which intervenes directly or indirectly in foreign exchange markets by altering
interest rates is considered as

A. centralized instruments
B. centralized stocks
C. central government
D. central corporations

Q 11: Services provided by financial institutions as providing financing to any specific sector of
economy such as real estate business are classified as

A. business allocation
B. sector allocation
C. economic allocation
D. credit allocation

Q 12: Risk arises when technology system may got malfunction is classified as

A. system risk
B. technology risk
C. operational risk
D. support risk
Q 13: Type of market in which securities with less than one year maturity are traded, is
classified as

A. money market
B. capital market
C. transaction market
D. global market

Q 14: Type of structured market through which funds flow with help of financial instruments
such as bonds and stocks is classified as

A. financial markets
B. non-financial markets
C. funds market
D. flow market

Q 15: Type of risk in which payments are interrupted by intervention of foreign governments is
considered as

A. channel risk
B. globalization risk
C. state risk
D. country risk

Q 16 Risk of financial institutions which states mismatching asset maturities and liability
maturities, is classified as

A. selling intermediation
B. maturity intermediation
C. direct intermediation
D. indirect intermediation
Q 17: Legal document required by Securities Exchange Commission stating associated risks
and detailed description of issues is classified as

A. prospectus
B. stated document
C. risk detailed document
D. exchange commission document

Q 18: Process of selling and buying of stocks and bonds is classified as

A. s-trade
B. b-trade
C. e-trade
D. stock trade

Q 19: Risk stating assets are sold at low prices because of sudden surge in withdrawals of
liabilities is classified as

A. payment risk
B. liquidity risk
C. income risk
D. balance risk

Q 20: In capital markets, major suppliers of trading instruments are

A. government and corporations

B. liquid corporations
C. instrumental corporations
D. manufacturing corporations
Q 21: Transfer of financial instruments from suppliers of funds to users of funds without any
intermediary in between is classified as

A. global transfer
B. pension transfer
C. direct transfer
D. indirect transfer

Q 22: Type of financial markets in which corporations issues new funds to raise funds is
classified as

A. flow market
B. primary markets
C. secondary markets
D. funding markets

Q 23: Type of security backed by mortgage cash flows and are packed by financial instruments
is classified as

A. cash mortgage
B. securitized mortgage
C. financial mortgage
D. instrumental mortgage

Q 24: Markets in which transactions are done through computers and telephone without any
specific location are classified as

A. past counter market

B. future counter market
C. over the counter markets
D. capital counter market
Q 25: Institutions deal in financial functions and protects corporations and individuals against
accidents, theft and death are considered as

A. penalty companies
B. insurance companies
C. events dealers
D. protecting companies

Q26: Saving banks, insurance companies, mutual funds and commercial banks are all examples
of

A. non-financial institutions
B. derivative institutions
C. financial institutions
D. payable institutions

Answer C

Q27: Additional debt instruments or equity instruments of publicly traded firm are included in
markets classified as

A. flow market
B. primary markets
C. secondary markets
D. funding markets

Answer B

Q28: Maturity of debt instruments which faces more price fluctuations is

A. primary maturity
B. capital maturity
C. short term maturity
D. long term maturity

Answer D
Q29: Financial instruments of public markets include

A. transfer funds
B. bearer bonds
C. shares
D. bonds

Answer C

Q30: Centralized market place where agents can have efficiently and quickly transactions is
classified as

A. secondary markets
B. central market
C. traded market
D. agents market

Q31: Risk arises from trading of assets because of change in asset prices and exchange rates is
classified as

A. asset risk
B. trade risk
C. market risk
D. exchange risk

Answer C

Q32: Type of institutions that write securities, engage in brokerage and security trading are
considered as

A. trading institutions
B. activity institutions
C. investment banks
D. mortgage banks

Answer C
Q33: Issuers that are not involved directly in funds transferring are classified as

A. individual issuers
B. corporate issuers
C. local issuers
D. global issuers

Answer B

Q34: Situation in which claims by financial institutions is more considerable for investors then
claims issued by corporations, is classified as

A. asset transformers
B. liability transformers
C. issuing transformers
D. claiming transformers

Answer A

Q35: Reduction of risk by holding large number of securities in portfolio of assets is classified as

A. diversification
B. selling ability
C. reduction ability
D. director ability

Q36: Bonds which are denominated in dollars and are issued in canters of London and
Luxemburg are classified as

A. London bonds
B. Eurodollar bonds
C. central bonds
D. decentralize bonds

Answer B
Q37: Financial intermediaries offering savings plan to individuals and funds are exempted from
taxation are considered as

A. trading funds
B. penalty funds
C. pension funds
D. global funds

Answer C

Q38: Ability of an asset to be converted in to cash very quickly is classified as

A. variable securities
B. convertible securities
C. liquidity
D. constant securities

Answer C

Q39: Type of markets in which derivative securities are traded is classified as

A. derivative security markets

B. trading markets
C. classified markets
D. non-trading markets

Answer A

Q40: Institutions classified as depository ones and have loans as their major assets are classified
as

A. commercial banks
B. commercial mortgages
C. credit mortgages
D. credit derivative

Q41: Major assets of commercial banks are

A. commercial loans
B. consumer loans
C. deposits
D. both a and c
 Answer D

Q42: Exchange rate of foreign currency fluctuate day to day because of

A. demand and supply

B. increased maturity
C. decreased maturity
D. instrument availability

Answer A

Q43: Institutions that facilitate channeling of funds and all related functions are classified as

A. financial institutions
B. payable institutions
C. non-financial institutions
D. derivative institutions

Answer A

Q44: Companies that collect funds from companies and individuals and invest in portfolios of
assets are classified as

A. activity funds
B. mutual funds
C. penalty funds
D. financing funds

Answer B

Q45: In money markets, excess supply of funds from agents is for

A. past terms
B. future terms
C. long term
D. short term
Q46: In commercial banks, subordinate debentures and subordinate notes are considered as

A. stated rates
B. banks debentures
C. banks liabilities
D. banks deposits

Answer C

Q47: Type of financial security having payoffs which are connected to some securities issued
some time back, is classified as

A. linked security
B. previous security
C. payoff security
D. derivative security

Answer D

Q48: Corporate equities or corporate stocks represent portion in instruments of capital markets,
which is

A. largest
B. smallest
C. never paid
D. none of the above

Answer A

Q49: Depository institutions that concentrate loans in one segment such as consumer loans are
considered as

A. thrifts
B. state bank
C. global bank
D. multinational institutions

Answer A
Q50: Risk which arises from insufficient capital available to balance sudden decrease in assets
value is classified as

A. insolvency risk
B. solvency risk
C. balanced risk
D. unbalanced risk

THANK YOU!