Financial Markets Quiz
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Questions and Answers

What is the nature of a financial market?

  • A market for the exchange of physical assets
  • A market for the exchange of goods and services
  • A market for the creation and exchange of financial assets (correct)
  • A market for the exchange of labor
  • In the financial market, who are the surplus units and deficit units?

  • Both investors and business enterprises are surplus units
  • Both investors and business enterprises are deficit units
  • Investors are deficit units and business enterprises are surplus units
  • Investors are surplus units and business enterprises are deficit units (correct)
  • How are financial markets classified based on the maturity of financial instruments?

  • Money market for instruments with maturity less than one year, capital market for longer maturity instruments (correct)
  • Money market for government securities, capital market for corporate securities
  • Money market for equity instruments, capital market for debt instruments
  • Money market for instruments with longer maturity, capital market for shorter maturity instruments
  • What are the assets in the money market often referred to as?

    <p>Near money instruments</p> Signup and view all the answers

    What is the function of the stock exchange in the capital market?

    <p>Facilitates buying and selling of securities</p> Signup and view all the answers

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