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Supplementary objective test questions

CHAPTER 3 – THE FINANCIAL CONTEXT OF BUSINESS I

3.1 Which of the following financial institutions would be associated with the
money market?

(i) Banks.

(ii) Discount houses.

(iii) Investment trusts.

(iv) Unit trusts.

A (i) and (ii)

B (i) and (iii)

C (ii) and (iii)

D (ii) and (iv)

3.2 The linking of net savers with net borrowers is known as:

A the savings function

B financial intermediation

C financial regulation

D a store of value

3.3 Which of the following is NOT an example of short-term finance?

A Bank overdraft

B Trade credit

C Venture capital

D Factoring

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