FIRST QUIZ FOR ECONS 204: MACRO ECONOMICS II Days Hours Minutes Seconds Leave this field blank Your Name: Reg. Number Your Department: Course of Study: 1. What is the typical maturity period for financial instruments in the money market? Pick the correct answers from the options provided. (a) One year (b) Five years (c) Ten years (d) Fifteen years 2. What is the primary function of the money market in financing trade? (c) Making fund available to traders (a) Financing long-term loans (d) Facilitating foreign exchange transactions (b) Providing insurance to traders 3. Which of the following is NOT a participant in the money market? (a) Commercial Banks (b) Central Banks (c) Stock Market Investors (d) Corporations 4. What is a characteristic of Treasury Bills (T-Bills) in the money market? (a) High risk due to lack of government backing (b) Long maturities exceeding five years (c) Sold at face value without discounts (d) Backed by the government and sold at a discount 5. How can commercial banks achieve self-sufficiency in the money market? (a) By relying on the central bank for loans (b) By borrowing at higher interest rates (c) By avoiding borrowing from central bank and opting for short term loan from other banks (d) By issuing long-term loans Submit
