11/3/22, 2:52 PM NCBA 1st Sem-2022-2023_Financial Market_Midterm Examination-Tth 2-3:30

NCBA 1st Sem-2022-2023_Financial

Market_Midterm Examination-Tth 2-3:30
November 3, 2022 / Thursday

Instructions:

1. Use only NCBA email address.  Use only NCBA email address. Camera on during the
exam.

2.  Strictly no considerations, following the instructions is part of the exam.

3. This is 35 items exam, total of 75 points.

4. Exam time limit: Strictly 1 hour. Link will automatically close after the scheduled time
and no longer accept responses.

5. A score of ZERO will be given to anyone caught cheating in any form during the exam.

6. No special exam will be given to student/s who FAILED to take during the scheduled
date unless otherwise a Letter of Consideration to take the Special Exam stating a valid
reason from the Office of the Student Affairs (OSA) is presented. However, the highest
equivalent exam grade is only 80%.

Part I: Numbers 1 to 10 - True or False (2) points each 

Part II-A: Numbers 11 to 20- Matching Type- (2) points each (Capital Letter, Write only the
letter of your answer , No Period)
Part II-B: Numbers 21 to 30- Matching Type- (2) points each (Capital Letter, Write only the
letter of your answer , No Period) 

Part III: Numbers 31 to 35 - Identification- 2 points each (Capital Letter, No Abbreviation) 

alonsagay.nathalie@ncba.edu.ph Switch account

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11/3/22, 2:52 PM NCBA 1st Sem-2022-2023_Financial Market_Midterm Examination-Tth 2-3:30

SURNAME, GIVEN NAME, MI. *

ALONSAGAY, NATHALIE, P.

Part I: Numbers 1 to 10 - True or False (2) points each / Prelim Quiz 1

Your answer

1. Financial institutions' operations that entail indirect financing the 2 points

importance of intermediaries, as opposed to direct financing, is enormous

which companies obtain financing from lenders directly in the financial

markets.

True

False

Clear selection

2. Operations of financial institutions that involve indirect financing 2 points

compared to direct finance, intermediaries are quite important. Which
businesses in the financial sector receive capital directly from lenders

markets.

True

False

Clear selection

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3. Risk Management  prevents financial markets from channeling funds into 2 points
the most productive investment opportunities. Consequently, the financial
markets and the economy become less efficient.

True

False

Clear selection

4. Stocks may not represent the primary source of outside funding for 2 points

businesses.

True

False

Clear selection

5. Banks in particular are the most significant source of outside capital 2 points
utilized to finance enterprises.

True

False

Clear selection

6. Net worth and collateral are relevant is moral hazard.

2 points

True

False

Clear selection
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7. Asymmetric information is seen in financial markets result in moral 2 points

hazard and unfavorable selection issues that prevent the effective
functioning of such markets.

True

False

Clear selection

8. Significant decline in the information's quality in

2 points
Asymmetry of information is increased by financial markets.

True

False

Clear selection

9.  Underwriting and Research in Investment Banking is not considered as 2 points

financial service.

True

False

Clear selection

10. Financial crisis sometimes an effect of decision making.

2 points

True

False

Clear selection
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11/3/22, 2:52 PM NCBA 1st Sem-2022-2023_Financial Market_Midterm Examination-Tth 2-3:30

Numbers 11 to 30- Matching Type- (2) points each (Capital Letter, Write only the
letter of your answer , No Period) 

A. Money and financial market

B. This theory contends that long term interest rates tend to be higher than short
term interest rates

C. Expectations and market segmentation theories

D. Stand-alone risk

E. Combination of the real rate of interest and the expected inflation to create a
nominal interest rates

F. Bonus issue

G. Offers High Liquidity

H. Global financial institution players

I. A Qualified Institutional Placement

J. Fisher equation

K. Types of Secondary Market Issuances

L. Primary market

M. Money

N. Underwriting

O. Interest rates

P. Taxes and expected risks

Q. Positively sloped yield curve

R. Global Financial system

S. Preferential Issue

T. Measure financial results of an investment

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V. Offers loans

W. Types of Primary Market Issuances

X. Downward-sloping yield curve

Y. Stock exchanges

Z. Supply side

Part II-A: Numbers 11 to 20- Matching Type- (2) points each

Your answer

11.  The financial system consisting  of  institutions  and  regulators  that 2 points

 act  on  the international level, as opposed to those that act on a national or
regional level

12. International monetary fund 2 points

13. Components of Financial system 2 points

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14. Used as medium of exchange 2 points

15. A penalty for consuming before

2 points

earning (Borrower)

16. Banco de Oro 2 points

17.  This side is consider as saving curve 2 points

18. Affects the investing decisions 2 points

19. The Fisher Effect 2 points

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20.  R= R + E(i) + ( R * E(i) ) 2 points

Part II-B: Numbers 21 to 30- Matching Type- (2) points each

Your answer

21. Upward-sloping yield curve 2 points

22.  Short-term interest rates exceed

2 points
long-term rates

23.  Are economic theories 2 points

24. Liquidity preference theory 2 points

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25. Investment returns 2 points

26. Market risk + Diversifiable risk 2 points

27. New issue market 2 points

28. Is a financial market in which new issues of a

2 points
security, such as a bond or a stock, are sold to

initial buyers by the corporation or government

agency borrowing the funds

29. It guarantees a price for a corporation’s

2 points
securities and then sells them to the public

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30.  Initial Public Offering 2 points

Part III: Numbers 31 to 35 - Identification- 3 points each (Capital Letter, No

Abbreviation) / Prelim Quiz 3

Your answer

31. _______________These are especially likely to occur when a financial 3 points

institution provides multiple services.

CONFLICTS OF INTEREST

32. _____________________ This is a situation that arises when one party’s 3 points

insufficient knowledge about the other party involved in a transaction makes

it impossible to make accurate decisions when conducting the transaction
is an important aspect of financial markets.

ASSYMETRIC INFORMATION

33.  Bundling investors’ funds together reduces transaction costs for each 3 points

individual investor. This principle refers to ____________________________

ECONOMIES OF SCALE

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11/3/22, 2:52 PM NCBA 1st Sem-2022-2023_Financial Market_Midterm Examination-Tth 2-3:30

34. 
The structure and operation of the _________________ are complex 3 points
operate everywhere in the world. It features a variety of banks, insurance
firms, mutual funds are some examples of institutions, the markets for
funds, stocks, and bonds, among other things are governed by the
government.

FINANCIAL SYSTEM

35.  _____________Is the investigation of asymmetrical data issues may arise 3 points

negative selection, issues with moral hazard.

AGENCY THEORY

-------End of Financial Market_Midterm Examination----. Before clicking submit,

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