1:30hr/minute و 16. NAME Tema Adem ID.NO. 051 DEPARTMENT Accounting PART ONE: TRUE OR FALSE (1 POINTS EACH) Say True if the statement is correct and False if it is incorrect and give the answer on the space provided(1.5pts. Each) Fase 1.Financial system is a system that aims at establishing and providing a regular, smooth, effective and efficient linkage between depositors and investors Tue 2.Financial markets can be classified according to the nature of the claim as debt market and equity/stock market True. The point at which quantity demanded is equal to quantity supplied is called equilibrium price. True authority. 4. Financial institutions are necessarily regulated by the financial laws of government The major difference between banks and the credit unions is that the bank is owned by the members having accounts in it. FOISES.Insurancecompanies are depository institutions FOIS 6.Un considering the financial structure of the particular country, the functionality of credit unions can be the same in different countries. FD7.. Insurance companies provide loans for a number of purposes and create investment products. FOIS 8. Financial markets is a market where financial instrument such as bond and stock are traded True. Commercial bank is one of depository institutions or deposit taking institutions. True 10.When an agent uses direct finance, funds are provided to the investors directly, without the use of an intermediary FDI 11.A real asset is an entity that generates a flow of goods or services over time. PART TWO (MULTIPLE CHOICE (2 POINTS EACH) Choose the correct answer among the given alternatives and give answer of the letter of your choice on the space provided(2 points each) 1A market where financial instruments with maturities of less than one year are traded refers A. Primary market B. Secondary market C. Money market D. Capital market B2. Which one of the following is/are odd A. Treasury Bills B. Corporate bond C. Commercial Paper D. Certificate of deposit C3. One among the following is different A. Money market B. Capital market C. Commodity Market D. Debt Market
