Question 1: Corporations get funding for long-term projects in the market of:

a) goods and services

b) capital

c) money

d) labor

Question 2: The role of financial institutions and markets is to serve as a mechanism for transferring funds from savers to investors.

a) True

b) False

Question 3: Which of the following institutions does not collect the savings of its clients in exchange for providing them as an issue of their own financial instruments?

a) Pension Funds

b) Investment Banking

c) Institutions in the Mutual Fund business

d) Insurance Companies

Question 4:  In the primary market the purchase and sale of financial instruments that are already in circulation takes place.

a) True

b) False

Question 5: Through which of the following financial instruments does the company get long-term funds?

a) Bonds

b) US Treasury Bonds

c) Negotiable certificates

d) Business Certificates

Question 6: Joint action is a financial instrument that:

a) represents long-term debt

b) is used in the money market to get loans.

c) provides the company with long-term funds.

d) pays interest to shareholders