Part I: Say true if the statement is correct and false if the
1. Capital appreciation occurs when stock value decreased.
2. The securities in the capital markets are long-term with high liquidity.
3. Unsecured promissory notes, issued by corporations,
4. Conceptual financial system includes simple of the institution which affect the generation
of saving
5. Competition among financial institution bring for the development of new product and
market.
6. The foreign exchange market is one of the largest and most liquid markets in the world.
7. Decline currency value is often referred as to appreciation.
8. When the price of underlying changes, the value of the derivative also changes
9. Option contracts are written on a number of financial instruments.
10. Financial activity regulation consists of rules about traders of securities and trading on
financial markets
Part II: Matching
A
11. Call option
12. Put option
13. Money market instrument
14. Commercial
15. Capital Market
16. Equity markets
17. Foreign Exchange Market
18. Hedging
19. Hybrid instruments
B
A. swaps
B. Eliminated or reduce risk
C. dominated by U.S Dollar
D. Bombay stock exchange
E. sell long-term bonds
F. unsecure promise note
G. fed fund
H. right to sells security
I. right to buys security
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