FINMA 2200 – FINANCIAL MARKETS

Prelims Exam – Part II

Instruction: Please be concise with your answers. Limit your answers from 100 to 120
words each question. Use Times New Roman, font 12 and double space. 7 points each.

1. In your own words, perception and understanding, what do you think is the
relevance of this subject, Financial Markets, to your career path as future
accountant/management accountant?

2. The payment system has evolved over time from relying on payments made on
gold and silver coins, to payment made with paper currency and bank checks, to
payment made by electronic transfers and e-cash system. In today’s landscape
of payment system, do you think physical paper/coins and checks are becoming
useless and should be forgotten? Why or Why not? Discuss.

3. Assuming that you have sufficient cash right now and you won’t need it in the
next 6 months. From the things you learned from this subject, between
underlying instruments and derivative instruments, what class of financial
instruments will you most likely invest/use your cash? Why? Discuss the pros and
cons of your choice.