Nikolas Reece
Quiz by , created more than 1 year ago

2016 CSEC Economics (Section 6 - Economic Management) Quiz on Financial Instruments, created by Nikolas Reece on 20/05/2016.

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Nikolas Reece
Created by Nikolas Reece about 8 years ago
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Financial Instruments

Question 1 of 8

1

A treasury bill is an instrument for short-term borrowing by

Select one of the following:

  • public companies

  • governments

  • insurance companies

  • importers

Explanation

Question 2 of 8

1

Which of the following financial instruments are issued by the Central Bank?

Select one of the following:

  • Treasury bonds

  • Corporate bonds

  • Equity securities

  • Shares on the stock exchange

Explanation

Question 3 of 8

1

The issue of a treasury bond represents a

Select one of the following:

  • Short-term loan to the government

  • Long-term loan to the government

  • Long-term loan to the Central Bank

  • Short-term loan by the Central Bank

Explanation

Question 4 of 8

1

Which of the following are equity securities?

Select one of the following:

  • Treasury bills

  • Government bonds

  • Corporate bonds

  • Company shares

Explanation

Question 5 of 8

1

How is a corporate bond different from a government bond?

Select one of the following:

  • A corporate bond is issued by a firm and a government bond is issued by the government.

  • A corporate bond is equity security and a government bond is a debt security.

  • A corporate bond is short term and a government bond is long term

  • A corporate bond gives the holder a claim on the company that issues it

Explanation

Question 6 of 8

1

Tradable assets which represent some monetary value to its owner is called

Select one of the following:

  • Securities

  • Loans

  • Share Market

  • Stock Market

Explanation

Question 7 of 8

1

The term 'Financial Instruments' and "Securities" are interchangable (mean the same thing)

Select one of the following:

  • True
  • False

Explanation

Question 8 of 8

1

Securities can be traded via the Stock Exchange

Select one of the following:

  • True
  • False

Explanation