30 Questions
What is the primary function of debentures in companies?
To raise long-term finance
What is the main goal of portfolio management in investment?
To minimize risk and maximize returns
What is the primary characteristic of a competitive market in investment?
Risk and returns are optimized
What is the role of financial intermediaries in investment management?
To channel funds between lenders and borrowers
What is the key concept in investment management that deals with agency issues?
Separation of ownership and management
What is the primary goal of investment management in a financial institution?
To channel funds by means of financial intermediaries
Which entity is considered to be always in a shortage of funds?
Government
What is the primary function of financial intermediaries in the economy?
To position between debtors and creditors
What is the likely outcome of a lively financial system on the production of goods and services?
Increased production due to suitable interest rates
Which of the following is NOT a key player in financial systems?
Individual Investor
What is the relationship between savings and investment in a lively financial system?
More savings lead to more investment
What is the likely outcome of more manufacturing companies having access to working capital?
Increased employment opportunities
What type of industry can prospective venture capitalists fund and employ more workers in?
Technology-based industry
What type of financial instruments are issued by capital markets to attract investment?
Debentures and shares
What type of financial assistance is provided by foreign exchange markets?
Forex requirements for international trade
What type of financing is provided by financial institutions to support domestic and international trade?
Letters of credit and financing
What type of countries can achieve financial prosperity through financial institutions, according to the text?
Countries not dependent on natural resources
What is the benefit of short-term loans provided by financial institutions?
Supporting the continuity of daily business operations
What is the primary purpose of establishing development banks and merchant banks in economic liberalization?
To raise funding for infrastructure buildings
What is the role of venture capitalists in the financial system?
To invest in highly risky information and technology businesses
What is the primary function of the Bangko Sentral ng Pilipinas in the financial system?
To regulate the financial system
What is one of the benefits of a vigorous financial system in attracting foreign investment?
Providing more investment prospects
What is one of the outcomes of economic integration among proximal countries or regions?
A common currency and investment trade practice
What is one of the benefits of a balanced financial system in regional development?
Promoting regional development
What is the primary function of the financial system?
To facilitate the interaction between investors and savers
What is a financial asset, according to the financial system?
Someone else's liability
Which of the following is a characteristic of financial assets?
They are greatly affected by inflation
What are the two main markets for trading financial instruments?
Money market and capital market
What is the term for the five investment assets traded in the market?
Investment classes
What is the definition of a financial derivative?
A financial instrument whose value is derived from another instrument
Test your knowledge of financial systems, institutions, and concepts. This quiz covers investment, savings, and risk management in the financial sector. Learn how financial institutions work together with investors and savers to facilitate economic growth.
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