3rd grading

Question 1

funds available for a short time

Answer 1

money market instruments

Question 2

issued by the government and maturity within a year

Answer 2

treasury bills

Question 3

issued by financially sound business to find investment in INVENTORIES and RECEIVABLES

Answer 3

commercial papers

Question 4

issued by mutual fund companies

Answer 4

money market funds

Question 5

long term debt, security reflecting the debts of a government promising to pay a fixed interest to the bondholder for a definite time

Answer 5

bond

Question 6

longer term than money market instrument, specified term

Answer 6

note

Question 7

long term debts (4)

Answer 7

treasury notes and bons
federal agency debt
municipal bond
corporate bonds

Question 8

represent ownership in a corporation

Answer 8

stock

Question 9

no maturity date, more risky, no voting rights, has preference

Answer 9

preferred stock

Question 10

units of ownership in a public corporation

Answer 10

common stock

Question 11

meeting places of suppliers and users of various types of funds

Answer 11

financial market

Question 12

buyers and sellers negotiate and transact business directly

Answer 12

primary market

Question 13

sale of new securities to the general public

Answer 13

public offering

Question 14

IPO stands for

Answer 14

Initial public offering

Question 15

sale of a security to a private buyer

Answer 15

private placement

Question 16

previously issued securities are bought and sold

Answer 16

secondary market

Question 17

securities with short term maturities are borrowed or loaned

Answer 17

money market

Question 18

capital market

Answer 18

long term

Question 19

banks in the countryside or rural areas

Answer 19

thrift banks

Question 20

extend credit to the retail and consumer market, transactions are many but small

Answer 20

commercial banks

Question 21

lend money to multinational companies

Answer 21

universal banks

Question 22

provide loans to big corporation and government

Answer 22

investment companies

Question 23

extend financing to companies that needs funds

Answer 23

leasing companies

Question 24

can provide financing to companies or raise funds through bonds

Answer 24

investment companies

Question 25

SEC stands for

Answer 25

securities exchange commission

Question 26

investment or funds of small investors pooled together to generate maximum returns

Answer 26

mutual funds

Question 27

sell life and non life products that offer security during times of death, illnesses accident and damage to property

Answer 27

insurances companies

Question 28

allows owners to invest more aggressively

Answer 28

private equity funds