Answer Key
A. Multiple Choice B. True or False
1. B 6. TRUE
2. D 7. FALSE
3. C 8. TRUE
4. D 9. TRUE
5. B 10. FALSE
C. Identification
11. To serve as a channel to transfer excess funds from fund providers to fund demanders
12. Household regulators
government and businesses fund managers
financial intermediaries financial exchanges.
broker and dealers
13. Money Markets
14. Capital Markets
15. MONEY MARKET COMPARISON CAPITAL MARKET
Informal Nature of market More formal
Liquid Liquidity Less liquid
Up to 1 year Maturity Period Do not have stipulated
time frame
Low risk Risk Factor High risk
Low return Return on High return
investment
D. Matching Type
16. B
17. E
18. C
19. A
20. F
Primary Source:
Marvin V. Lascano, Herbert C. Baron, Andrew Timothy L. Cachero. Fundamentals of Financial
Markets. 2019.
Other Sources:
https://ebrary.net/16/business_finance/six_elements_the_financial_system
https://phavi.umcs.pl/at/attachments/2017/0405/133257-financial-system-an-introduction.pdf
https://universalteacher.com/1/components-of-financial-system/
https://www.investopedia.com/terms/f/financialintermediary.asp
http://www.bsp.gov.ph/about/overview.asp
https://ebrary.net/429/business_finance/price_discovery
https://ebrary.net/455/economics/financial_markets