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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
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