1. Preference stocks are example of
Ans: Equity-based financial instruments
2. Flow of funds where borrower acquire funds directly from lenders in financial markets
Ans: Direct finance
3. It is the registrar and overseer of the Philippine corporate sector; it supervises more
than 600,000 active corporations and evaluates the FS filed by all corporations
registered with it. Ans: Securities and Exchange Commission (SEC)
4. Markets that trade financial instruments once they are issued.
Ans: Secondary Market
5. A well-functioning money market facilitates the development of a market for long-
term securities.
Ans: True
6. These are rights of the ordinary share holder except
Ans: The right to share in profits above and beyond the declared dividends
7. The returns earned by low risk and highly liquid securities are high because they are
widely traded.
Ans: False
8. The following agencies are part of the Capital Market Working Group exempt:
Ans: Philippine Deposit Insurance Commission (PDIC)
9. Describe the situation in which one party to an economic transaction has better
information than does the other party.
Ans: Asymmetric Information
10. Financial instruments that derive their value on contractually required cash flow from
some other securities or index.
Ans: Derivatives
11. The first phase in the Three-phased program of interventions to counter COVID-19
of NEDA includes
Ans: Fast-track the public health response by ramping up the healthcare system's
capacity
12. Abundant computing power and cheap telecommunications have slowed the growth
of market. Ans: False
13. The three key services that the financial system provides to savers and borrowers
include Ans: Liquidity
, 14. Measure of money that includes money held in savings deposit, money market
deposit accounts, non-institutional money market, mutual funds and other short-term
money market assets. Ans: M2
15. It is the ease in which an asset can be exchanged for money which savers view as a
benefit Ans: Liquidity
16. Which activity can best reduce the problem investors experience in verifying the
borrowers are using their funds as intended. Ans: Imposing restrictive covenants
17. Why do inventors consider treasure among the safest income investment in the
world. Ans: Because they are issued by the government.
18. The agency that provides housing loans to both government and private employees
Ans: Pag-ibig
19. Trading stocks is easier and spread narrower when the market is less liquid.. Ans:
False 20. The quantity Theory of money holds that changes in the Money supply (MS)
directly
Ans: False
21. Bond ratings are unfavorably by a low utilization of financial leverage Ans: False
22. These are low rated bonds, rated BB or below Ans: Junk bonds
23. It is the statutory receiver and liquidator of close banks. Upon order ....
Ans: Philippine Deposit Insurance Commission (PDIC)
24. The advantage of holding debt securities is to directly benefit from any increase in
the corporation’s profitability or asset value Ans: False
25. All of the following describes fiat money
Ans: Fiat money good for saving because theses currencies are more likely to undergo
deflation
26. In financial transactions, typically the lender has more information than the
borrower. Ans: False
27. Traders who buy and sell securities in single day favor Ans: True
28. The price at which Securities are bought and recognized stock exchange is known as
Ans: Official quotation
29. The financial instruments are directly influenced and determined by the markets .
Ans: Primary instruments
30. Money demanded as a result of unanticipated payment. Ans: Precautionary demand
31. Land that were purchased by the government for sale to actual occupants under the
Ans: Equity-based financial instruments
2. Flow of funds where borrower acquire funds directly from lenders in financial markets
Ans: Direct finance
3. It is the registrar and overseer of the Philippine corporate sector; it supervises more
than 600,000 active corporations and evaluates the FS filed by all corporations
registered with it. Ans: Securities and Exchange Commission (SEC)
4. Markets that trade financial instruments once they are issued.
Ans: Secondary Market
5. A well-functioning money market facilitates the development of a market for long-
term securities.
Ans: True
6. These are rights of the ordinary share holder except
Ans: The right to share in profits above and beyond the declared dividends
7. The returns earned by low risk and highly liquid securities are high because they are
widely traded.
Ans: False
8. The following agencies are part of the Capital Market Working Group exempt:
Ans: Philippine Deposit Insurance Commission (PDIC)
9. Describe the situation in which one party to an economic transaction has better
information than does the other party.
Ans: Asymmetric Information
10. Financial instruments that derive their value on contractually required cash flow from
some other securities or index.
Ans: Derivatives
11. The first phase in the Three-phased program of interventions to counter COVID-19
of NEDA includes
Ans: Fast-track the public health response by ramping up the healthcare system's
capacity
12. Abundant computing power and cheap telecommunications have slowed the growth
of market. Ans: False
13. The three key services that the financial system provides to savers and borrowers
include Ans: Liquidity
, 14. Measure of money that includes money held in savings deposit, money market
deposit accounts, non-institutional money market, mutual funds and other short-term
money market assets. Ans: M2
15. It is the ease in which an asset can be exchanged for money which savers view as a
benefit Ans: Liquidity
16. Which activity can best reduce the problem investors experience in verifying the
borrowers are using their funds as intended. Ans: Imposing restrictive covenants
17. Why do inventors consider treasure among the safest income investment in the
world. Ans: Because they are issued by the government.
18. The agency that provides housing loans to both government and private employees
Ans: Pag-ibig
19. Trading stocks is easier and spread narrower when the market is less liquid.. Ans:
False 20. The quantity Theory of money holds that changes in the Money supply (MS)
directly
Ans: False
21. Bond ratings are unfavorably by a low utilization of financial leverage Ans: False
22. These are low rated bonds, rated BB or below Ans: Junk bonds
23. It is the statutory receiver and liquidator of close banks. Upon order ....
Ans: Philippine Deposit Insurance Commission (PDIC)
24. The advantage of holding debt securities is to directly benefit from any increase in
the corporation’s profitability or asset value Ans: False
25. All of the following describes fiat money
Ans: Fiat money good for saving because theses currencies are more likely to undergo
deflation
26. In financial transactions, typically the lender has more information than the
borrower. Ans: False
27. Traders who buy and sell securities in single day favor Ans: True
28. The price at which Securities are bought and recognized stock exchange is known as
Ans: Official quotation
29. The financial instruments are directly influenced and determined by the markets .
Ans: Primary instruments
30. Money demanded as a result of unanticipated payment. Ans: Precautionary demand
31. Land that were purchased by the government for sale to actual occupants under the
