Finmar
Modules
My Progress
Answers for Module 2: Chapter 5
Review the correct answers and explanations for each question in this module.
Q1: According to Prasanna Chandra, what is the principal means by which savings are transformed into investment?
Q2: What process facilitates the flow of funds between savers and borrowers in the economy?
Q3: Which of the following is NOT listed as a fundamental objective of a modern financial system?
Q4: What do financial instruments like stocks and bonds represent?
Q5: What is the role of financial markets?
Q6: Which entity is responsible for issuing currency and managing monetary policy in the Philippines?
Q7: The function of "Risk Sharing" in the financial system is exemplified by:
Q8: What is "liquidity risk"?
Q9: What problem can arise from "Asymmetric Information" in the financial system?
Q10: Which of the following is a key component of the financial system?
Q11: A major objective of a financial system is to institutionalize and standardize transactions like:
Q12: What is the role of prices in financial markets?
Q13: What is one of the two key elements of liquidity risk?
Q14: Besides providing a payment system, what is another fundamental objective of a modern financial system?
Q15: What is the primary role of "Other Regulators" like the Securities and Exchange Commission?