D076 Module 2 Quiz Question and answers already passed 2025/2026
1.What are the purposes of financial markets?
To provide
liquidity and
determine prices
2.In which financial market are securities such as stocks Secondary market and
bonds are traded after their initial issuance?
3. What kind of market primarily allows Money market
institutions to borrow and lend in the short
term?
Primary Market
4. A local start-up company just hit its five-year
anniver-sary and is planning an initial public
offering sometime this year. In order to issue
public stock, which market will the company
use?
5. What is the primary role of financial institutions? To conduct financial trans-
actions such as
invest-ments, loans,
and deposits
6. What is a depository institution? An institution that
accepts and pays
interest on de-posits
of money as well as
extends loans
7. Which financial institution ensures that a 9. Which type
nation's economy remains healthy by of financial
controlling the amount of money circulating institution
in the economy? deals
mainly
8. How do insurance companies pay policyholders with
when a claim is made? providing
for
1/
6
, retirement through employers? Central bank
They use returns from
stocks and bonds.
Pension fund
2/
6
1.What are the purposes of financial markets?
To provide
liquidity and
determine prices
2.In which financial market are securities such as stocks Secondary market and
bonds are traded after their initial issuance?
3. What kind of market primarily allows Money market
institutions to borrow and lend in the short
term?
Primary Market
4. A local start-up company just hit its five-year
anniver-sary and is planning an initial public
offering sometime this year. In order to issue
public stock, which market will the company
use?
5. What is the primary role of financial institutions? To conduct financial trans-
actions such as
invest-ments, loans,
and deposits
6. What is a depository institution? An institution that
accepts and pays
interest on de-posits
of money as well as
extends loans
7. Which financial institution ensures that a 9. Which type
nation's economy remains healthy by of financial
controlling the amount of money circulating institution
in the economy? deals
mainly
8. How do insurance companies pay policyholders with
when a claim is made? providing
for
1/
6
, retirement through employers? Central bank
They use returns from
stocks and bonds.
Pension fund
2/
6
