Money and capital markets - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1997

Stock and shares as well as bonds are examples of instruments used in the?

A. Commodity markets
B. Money markets
C. Capital markets
D. Security markets

Question 7:

• JAMB 2000

A capital market differs from the money market in that in the former?

A. Loan sought is short term
B. Loan reayment is guaranteed
C. Loan sought is long term
D. The percentage of interest chargedis more

Question 8:

• JAMB 2003

The term 'Near money' is best described as

A. A financial instrument that is readily convertible to cash
B. Government financial instrument that is convertible to cash
C. Time deposits with low interest rates
D. A financial asset that is convertible to cash

Question 9:

• JAMB 2003

The distinguishing characteristic between the money market and the capital market lies in whether the

A. Securities are primary or secondary
B. Debt instruments provided are long-term or short-term
C. Funds mobilized are private or public
D. Securities are in debentures or ordinary shares

Question 10:

• JAMB 2004

The capital market provides business firms with the avenue to

A. Lease capital equipment
B. Obtain long-term funds
C. Obtain short-term funds
D. Purchase capital equipment