Financial Markets and Structures Quiz
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Questions and Answers

What is the definition of the financial system according to Prof. S.B. Gupta?

  • The commodities that are traded in a financial market
  • The backbone of the financial system
  • A set of institutional arrangements through which financial surpluses available in the economy are mobilized (correct)
  • A set of interrelated activities or services to achieve some pre determined goal

    • What do financial assets represent?

  • The backbone of the financial system
  • A set of interrelated activities or services to achieve some pre determined goal
  • A claim on the repayment of principal & additional income at a future date (correct)
  • The commodities that are traded in a financial market

    • What are financial institutions responsible for?

  • Regulating the financial markets
  • Mobilizing and transferring the savings from the surplus units (correct)
  • Trading commodities in the financial market
  • Providing budgeting and spending guidance

    • What is the role of financial instruments in the financial market?

    <p>Representing a claim on the repayment of principal &amp; additional income at a future date</p> Signup and view all the answers

    What does finance focus on?

    <p>How the money is budgeted and spent</p> Signup and view all the answers

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