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1. Which of the following is NOT a financial instrument?

a) A share of general Motors stock


b) A tuition bill
c) A U.S.Treasury Bond
d) A home insurance policy

2. The system of financial relations includes what stages?


a) Financial intermediation
b) State financial
c) Corporate Finance
d) All the answers above

3. Which of the following best expresses the proceeds a lender receives from a one-year simple loan
when it is paid back?
a) PV(1+i)
b) FV/i
c) PV+i
d) PV/i

4. In essence, the financial relationship is


a) The process of consuming goods
b) The process of transfering funds
c) Production process
d) Buying and selling

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