Financial Institutions and Services Multiple Choice Questions with Answers – 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