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Questions and Answers
What is the nature of a financial market?
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?
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?
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?
What are the assets in the money market often referred to as?
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What is the function of the stock exchange in the capital market?
What is the function of the stock exchange in the capital market?
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