Chapter 24

Question 1

The financial system play a key role in the economy

Answer 1

D) All of the above

Question 2

Financial markets provide the following three major economic functions

Answer 2

A) Price discovery, liquidity and reduction of transaction costs.

Question 3

In any transaction related to a financial instrument

Answer 3

D) Answers B and C are correct

Question 4

Financial markets regulation

Answer 4

B) Is aimed at ensuring the fair treatment of participants and the disclosure of accurate information for investment decision-making.

Question 5

Financial credit establishments are not allowed to

Answer 5

C) Receive repayable funds from the public in the form of deposits, loans and temporary assignments of financial assets or other comparable instruments.

Question 6

The purpose of the CNMV is

Answer 6

A) To ensure the transparency of the Spanish Securities market and the correct formation of prices in them, as well as protecting investors.

Question 7

MARF is defined as

Answer 7

A) An initiative aimed at channelling financial resources to a large number of solvent companies that can obtain financing using this market on the issuance of fixes-income securities.

Question 8

The contract for opening credit id defined as

Answer 8

B) A contract by which the creditor, in exchange for the receipt of a commission, undertakes to grant credit fro the customer, according to the agreed limits of term and amount, by making deliveries of hard cash or by performing provisions that enable him to get hard cash.

Question 9

Which of the following are amongst the different reasons that are alleged when deciding to go public

Answer 9

D) all of the above.

Question 10

Which of the following events is related to the mandatory takeover

Answer 10

C) Answers A and B are correct.