Topic 1 - Financial Markets

Topic 1 - Financial Markets - BANK1005 Derivatives and...

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BANK1005 Derivatives and Securities Markets P a g e | 1 TOPIC 1 – FINANCIAL MARKETS MULTIPLE CHOICE QUESTIONS 1. Which of the following is (are) financial asset(s): A) Bonds B) Machinery equipment C) Shares D) A and C E) A, B and C 2. Which of the following is (are) examples of financial intermediaries: A) Commercial banks B) Insurance companies C) Managed funds D) An airline company E) A and B 3. Financial assets permit the following functions: A) The timing of consumption B) The elimination of risk C) The allocation of cash flows from the firm’s assets D) The allocation of risk E) All of the above 4. A new issue of shares by a company, for the first time, takes place A) In the secondary market. B) In the primary market. C) Usually with the assistance of an investment banker. D) A and B. E) B and C. 5. The secondary market consists of A) Transactions on the Australian Stock Exchange. B) Transactions in the OTC market.
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Topic 1 - Financial Markets - BANK1005 Derivatives and...

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