Kidd Aster Rubio BSA 2-2

Financial Markets – Activity 1

1. Financial market participants who provide funds are called

a. deficit units. c. primary units.
b. surplus units. d. secondary units.

2. The main provider(s) of funds to the Philippine Treasury is (are)

a. households and businesses. c. the Federal Reserve System.
b. foreign financial institutions. d. foreign nonfinancial sectors.

3. The largest deficit unit is (are)

a. households and businesses. c. the U.S. Treasury.
b. foreign financial institutions. d. foreign nonfinancial sectors.

4. Those financial markets that facilitate the flow of short-term funds are known as
a. money markets. c. primary markets.
b. capital markets. d. secondary markets.

5. Funds are provided to the initial issuer of securities in the

a. secondary market. c. deficit market.
b. primary market. d. surplus market.