chap 1 - introduction to financial markets (exercise 1)

Question 1

Financial markets help the users of funds to create products or services and provide a return for those who have excess funds. TRUE or FALSE

Answer 1

true

Question 2

A financial system is a group of financial institutions and financial markets that creates financial instruments and financial services. true or false?

Answer 2

true

Question 3

Investing in the financial market is considered to be high risk and yet, it provides a low return. true or false?

Answer 3

false

Question 4

Economists view that the highly developed and dynamic economic system would be possible without an equally sophisticated financial system. TRUE or FALSE?

Answer 4

FALSE

Question 5

Commercial bank has the highest capitalization and has the powers of an investment house and the power to invest in non-allied enterprises. TRUE or FALSE?

Answer 5

false

Question 6

Cooperative banking, just like a thrift bank, accepts deposits and provides loans to individuals to undertake ventures in any principles of the cooperative. TRUE or FALSE?

Answer 6

true

Question 7

Investment bank provides planning, consultancy, fund management, and raising funds through equity financing and borrowings. TRUE or FALSE?

Answer 7

true

Question 8

Securities brokers are individuals or firms engaged in the buying and the selling of stocks for commission. TRUE or FALSE?

Answer 8

true