Meaning And Segments of Financial System - SS1 Economics Past Questions and Answers - page 1
Which of the following is NOT a segment of the financial system?
Financial Institutions
Financial Markets
Payment and Settlement Systems
Regulatory Bodies
Manufacturing Companies
Which of the following financial instruments provides ownership in a company?
Stocks
Bonds
Derivatives
Mutual Funds
All of the above
Which of the following payment systems allows for the transfer of funds between bank accounts?
Credit Card Networks
Electronic Funds Transfer Systems
PayPal
Venmo
All of the above
Which of the following financial institutions is owned by its members and operates on a non-profit basis?
Banks
Credit Unions
Insurance Companies
Hedge Funds
Venture Capital Firms
What is the role of financial institutions in the financial system?
They act as intermediaries between savers and borrowers, taking deposits from savers and using those funds to make loans to borrowers
What is the purpose of regulatory bodies in the financial system?
These are organizations that oversee the financial system and ensure that it operates in a safe and stable manner.