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square square PART ONE: Say True if the statement is correct and Palse if it is co correct and give e your answer-on-answer sheet provided separately. square I. Financial system is any marketplace physical or virtual where financial instruments can be traded 2. Depositor financial institutions are financial intermediaries that accept deposite from individuals and institutions and make loans. 3. One of the Objectives of credit control is to attain of high growth rate while maintaining the reasonable stability of the internal purchasing power of money 4. The trade-off between safety and return is very important in deciding capital adequacy management 5. The monopoly right/power given to central bank to issue notes in a country creates uniformity in note circulation and its better regulation of currency in the market. PART TWO:Choose the best answer from the given alternatives and write your answer on the space provided on the answer sheet I. From the following which one correct about Central bank? A. deals directly with the public C. Aets as a state or priyate owned institution B. Control and regulates entire banking system D. Acts as an agents of commercial bank __ is a system that allows the exchange of funds between financial market participant such as lenders investors. and borrowers. A. Financial system C. Financial market B. Financial institutions D. None of the above 3. From the following which one is not component of financial mitiations? C. Financial Markets A. Lenders and Borrowers B. Financial Institutions D. None of the above 4. From the following which one is incorrect about financial institutions? A. They are business organizations that act as mobilisers and depositories of savings B. they are creators of credit and finance C. They engage in trading of physical assets D. They deal with deposits, loans and securicies. 5. Of the following which one is not the functions of financial institutions? A. Bringing the savers and the borrowers together. B. Promoting saving and investment habits

Question

square 
square 
PART ONE: Say True if the statement is correct and Palse if it is co
correct and give e your answer-on-answer sheet provided separately.
square 
I. Financial system is any marketplace physical or virtual where financial instruments can be traded
2. Depositor financial institutions are financial intermediaries that accept deposite from individuals and institutions
and make loans.
3. One of the Objectives of credit control is to attain of high growth rate while maintaining the reasonable stability of
the internal purchasing power of money
4. The trade-off between safety and return is very important in deciding capital adequacy management
5. The monopoly right/power given to central bank to issue notes in a country creates uniformity in note circulation
and its better regulation of currency in the market.
PART TWO:Choose the best answer from the given alternatives and write your answer on the space provided on the
answer sheet
I. From the following which one correct about Central bank?
A. deals directly with the public
C. Aets as a state or priyate owned institution
B. Control and regulates entire banking system
D. Acts as an agents of commercial bank
__ is a system that allows the exchange of funds between financial market participant such as lenders investors.
and borrowers.
A. Financial system
C. Financial market
B. Financial institutions
D. None of the above
3. From the following which one is not component of financial mitiations?
C. Financial Markets
A. Lenders and Borrowers
B. Financial Institutions
D. None of the above
4. From the following which one is incorrect about financial institutions?
A. They are business organizations that act as mobilisers and depositories of savings
B. they are creators of credit and finance
C. They engage in trading of physical assets
D. They deal with deposits, loans and securicies.
5. Of the following which one is not the functions of financial institutions?
A. Bringing the savers and the borrowers together.
B. Promoting saving and investment habits

square square PART ONE: Say True if the statement is correct and Palse if it is co correct and give e your answer-on-answer sheet provided separately. square I. Financial system is any marketplace physical or virtual where financial instruments can be traded 2. Depositor financial institutions are financial intermediaries that accept deposite from individuals and institutions and make loans. 3. One of the Objectives of credit control is to attain of high growth rate while maintaining the reasonable stability of the internal purchasing power of money 4. The trade-off between safety and return is very important in deciding capital adequacy management 5. The monopoly right/power given to central bank to issue notes in a country creates uniformity in note circulation and its better regulation of currency in the market. PART TWO:Choose the best answer from the given alternatives and write your answer on the space provided on the answer sheet I. From the following which one correct about Central bank? A. deals directly with the public C. Aets as a state or priyate owned institution B. Control and regulates entire banking system D. Acts as an agents of commercial bank __ is a system that allows the exchange of funds between financial market participant such as lenders investors. and borrowers. A. Financial system C. Financial market B. Financial institutions D. None of the above 3. From the following which one is not component of financial mitiations? C. Financial Markets A. Lenders and Borrowers B. Financial Institutions D. None of the above 4. From the following which one is incorrect about financial institutions? A. They are business organizations that act as mobilisers and depositories of savings B. they are creators of credit and finance C. They engage in trading of physical assets D. They deal with deposits, loans and securicies. 5. Of the following which one is not the functions of financial institutions? A. Bringing the savers and the borrowers together. B. Promoting saving and investment habits

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XavierAdvanced · Tutor for 1 years

Answer

Part One:<br />1. True<br />2. True<br />3. True<br />4. True<br />5. True<br />Part Two:<br />1. B<br />2. A<br />3. A<br />4. C<br />5. C

Explain

Part One:<br />1. A financial system does include marketplaces, physical or virtual, in which financial instruments are traded, hence true.<br />2. Depository institutions do play a key role in managing the flow of money in the economy by accepting deposits & making loans, making this statement true.<br />3. Credit control aims at attaining a high growth rate without adversely affecting the purchasing power of money. Hence, this is true.<br />4. Capital adequacy management involves making decisions that factor in both the safety and returns of an investment, making this a true statement.<br />5. Central banks are tasked with issue of notes and regulation of their circulation in many countries, creating uniformity — Hence, True.<br /><br />Part Two:<br />1. The functions of a central bank primarily include controlling & regulating the entire banking system (Answer B), not necessarily dealing directly with the public (A), or acting as agents of commercial banks (D).<br />2. The system that facilitates the exchange of funds is, in essence, the financial system (Answer A), as it encompasses all aspects of lending, investment and borrowing in an economy.<br />3. ‘Lenders and Borrowers’ are more of participants in a financial system than core components like the actual Institutions, which does include ‘Financial Institutions and Markets’ (C & B) bundled or standalone.<br />4. Financial institutions typically handle financial assets, not physical ones. Thus, this statement is incorrect — or Answer C. They primarily accept deposits, give out loans and deal with other financial securities.<br />5. Although financial institutions perform many key functions, engaging in direct trade of physical assets (Answer C) is typically not among them.<br /> <br />Sources: I love to teach, Mungosoft Courses, Economics Help
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