The financial system is formed from products and services provided by financial institutions including banks, insurance companies, pension funds, organized markets, and many other companies that facilitate economic transactions. Almost all economic transactions are affected by one or more financial institutions. They mix stocks and bonds, pay interest on deposits, borrowers and lenders, and maintain the payment system of the modern economy. A financial system refers to a system that enables the transfer of money between investors and borrowers. A financial system can be defined at an international, regional or organizational level. Let's know more about Financial System.
1. Where financial assets are created or transferred is called:
A. Money market
B. Financial market
C. Capital market
D. All of the above
2. In which market transactions are done for a period of more than one year?
A. Money market
B. Financial market
C. Capital market
D. None of the above
3. The foreign currency exchange market deals with _______________ requirements.
A. Single-currency
B. Multi-currency
C. Power-currency
D. Hope-currency
4. Who together with investors and savings lenders keeps the financial system in motion?
A. Financial system components
B. Financial Institution
C. Money market
D. Financial market
5. Which of the following is a market for old issues?
A. Primary market
B. Secondary market
C. Money market
D. Capital market
6. Which one of the following is a financial asset?
A. Gold
B. Silver
C. Share
D. All of the above
7. Which market deals with Short term instruments?
A. Capital market
B. Money market
C. Long market
D. Medium market
8. Which is an important instrument of short-term borrowing by the government?
A. National saving certificate
B. Bonds
C. Treasury bills
D. All of the above
9. Financial institutions are also known as:
A. Financial organisation
B. Financial intermediaries
C. Financial system
D. All of the above
10. Find the odd one out?
A. Share certificate
B. Treasury bills
C. Commercial paper
D. Certificate of deposit
11. Nifty is the index of which?
A. BSE
B. NSE
C. OTCEI
D. SEBI
12. Which is a guarantee for the marketability of shares?
A. Listing
B. Underwriting
C. Registration
D. Issue by prospectus
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