Page 94 - CAPE Financial Services Syllabus Macmillan_Neat

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1. A financial market in which only short-term debt instruments with original maturity of
one year or less are traded is known as a

(A) stock market
(B) capital market
(C) money market
(D) equity market

2. A financial market in which longer-term debt (with original maturity of one year or
greater) and equity instruments are traded is referred to as a

(A) stock
(B) capital
(C) money
(D) equity market

3. Which of the following are capital market instruments?

I. Stocks
II. Mortgages
III. United States Treasury Bills

(A) I and II only
(B) I and III only
(C) II and III only
(D) I, II, and III

4. Which of the following are money market instruments?

I. Negotiable Bank Certificate of Deposit
II. Bankers’ Acceptance
III. Repurchase Agreement

(A) I and II only
(B) I and III only
(C) II and III only
(D) I, II and III

5. What are Securities referred to as for the persons who buy them?

(A) Assets
(B) Liabilities
(C) Income
(D) Expenditure

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