LYCEUM-NORTHWESTERN UNIVERSITY

Tapuac District, Dagupan City

COLLEGE OF BUSINESS EDUCATION

1st Quiz
CAE1 Economic Development

Name: _________________________________ Score:_______/30

Year/Section:____________________________

Identification. STRICLY NO ERASURES! (WAG NG MAKULIT)

___________________1. They can offer specialist advice on your behalf. It saves you
understanding all the intricacies of the financial markets and spending
time looking for best investment.

___________________2. If you have a risky investment, you might wish to insure, against the risk
of default.

___________________3. These are entities that buy stocks and bonds and sell it the public.

___________________4. Informal types of banks which provides facilities for lending and
depositing within a particular community.

___________________5. These pool the small savings of individual investors and enable a bigger
investment fund.

___________________6. It is what left after a person purchases goods and services.

___________________7. It comes from the households either directly or indirectly.

___________________8. It comes from households if they wish to buy a house for instance, or
from the firms buying equipment and machinery to put up a new business
or to expand an existing one.

___________________9. Invest purely in short-term debt instruments in one year or less.

___________________10. An individual who owns a ______ of a particular firm means that he/she
is a part owner of the firm.
II. ENUMERATION. No erasures pa din.

a. Benefits of Financial Intermediaries

1.

2.

3.

4.

b. Potential Problems of Financial Intermediaries

1.

2.

3.

c. Characteristics of Bonds

1.

2.

3.

III. ESSAY ( No erasures)

What is the key difference between the Bond and Stock Markets? Explain your answer. (10 points)