Financial Markets MCQs | Economics

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Financial markets exist to bring together lenders (investors) with borrowers (governments and companies).
Financial markets MCQs

Financial Markets MCQs

Financial markets exist to bring together lenders (investors) with borrowers (governments and companies). Here on MCQs.club we have designed Multiple Choice Questions (MCQs) on Financial markets, these fully cover Derivative finance MCQs, financial markets and institutions, types and examples of financial market, derivative finance example and types, this economist guide to financial markets is useful for competitive exams, Business management and Professional accountancy exams.

  1. Financial markets exist to bring together lenders (investors) with borrowers (governments and companies).
    1. True
    2. False
  1. Short-term credit –
    1. A financial instrument that has a maturity date of, usually, less than 3 months.
    2. These are issued by companies or governments who need to increase their liquidity in the short term.
    3. Buyers of Short-term credit are investors looking to make a return on their money.
    4. All of the above
  1. Money market –
    1. The financial market which is used to raise short-term credit.
    2. The money market is a subsection of the wider fixed income market.
    3. It is used by large institutions to finance short term cash needs.
    4. All of the above
  1. Examples of Money market are:
    1. Governments
    2. Mutual funds
    3. Organisations with high financial backing.
    4. All of the above
  1. Instruments of the money market include:
    1. Treasury Bill (or T-bill)
    2. Certificate of Deposits (CDs)
    3. Commercial Paper
    4. All of the above
  1. Capital markets –
    1. The financial market which is largely used to raise long-term finance and capital.
    2. The capital markets are some of the most closely tracked financial indicators in the economy.
    3. Both A&B
    4. None
  1. The main types of organisation that operate in the Capital markets include:
    1. Corporations
    2. Commercial banks
    3. Stock exchanges
    4. Non-bank institutions
    5. All of the above
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