Financial Institutions and Services Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as

1. business allocation
2. sector allocation
3. economic allocation
4. credit allocation

MCQ 2: The risk of financial institutions which states the mismatching asset maturities and liability maturities, is classified as

1. selling intermediation
2. maturity intermediation
3. direct intermediation
4. indirect intermediation

MCQ 3: The process of selling and buying of stocks and bonds is classified as

1. s-trade
2. b-trade
3. e-trade
4. stock trade

MCQ 4: The situation in which the claims by financial institutions is more considerable for investors then the claims issued by corporations, is classified as

1. asset transformers
2. liability transformers
3. issuing transformers
4. claiming transformers

MCQ 5: The reduction of risk by holding large number of securities in portfolio of assets is classified as

1. diversification
2. selling ability
3. reduction ability
4. director ability