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Capital Market Institutions - SS2 Economics Past Questions and Answers - page 1

1

Which of the following is an example of a capital market institution?

A

Savings and loan association

B

Credit card company

C

Stock exchange

D

Credit union

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2

What types of financial instruments are typically traded in capital markets?

A

Short-term debt securities

B

Long-term debt securities

C

Insurance policies

 

D

Commodities

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3

Which of the following is not a role played by capital market institutions?

A

Helping companies raise capital

B

Providing research and analysis to investors

C

Facilitating short-term borrowing

D

Enabling secondary trading of securities

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4

What is the primary function of investment banks as capital markets institutions?

A

Issuing and selling securities for companies

B

Providing savings accounts to customers

 

C

Offering credit cards to consumers

D

Selling insurance policies to businesses

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5

What are examples of capital market institutions?

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6

What role do mutual funds play in capital markets?

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