Meaning And Segments of Financial System - SS1 Economics Past Questions & Answers - page 1

1

Which of the following is NOT a segment of the financial system?

A

Financial Institutions

B

Financial Markets

C

Payment and Settlement Systems

 

D

Regulatory Bodies

 

E

Manufacturing Companies

CORRECT OPTION: e
2

Which of the following financial instruments provides ownership in a company?

A

Stocks

B

Bonds

C

Derivatives

D

 Mutual Funds

 

E

All of the above

CORRECT OPTION: a
3

Which of the following payment systems allows for the transfer of funds between bank accounts?

A

Credit Card Networks

B

Electronic Funds Transfer Systems

 

C

PayPal

D

Venmo

 

E

All of the above

CORRECT OPTION: e
4

Which of the following financial institutions is owned by its members and operates on a non-profit basis?

A

 Banks

 

B

Credit Unions

C

 Insurance Companies

 

D

Hedge Funds

E

 Venture Capital Firms

CORRECT OPTION: b
5

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

6

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.

Pages: