Chapter 1: The World of Finance

1. Which is the largest foreign exchange market centre in the world?

United States United Kingdom Japan Germany

2. Which of the following represents the order of global stockmarkets in terms of total market capitalization in 2016?

1.USA 2.Japan 3.China 4. UK 1.Germany 2. USA 3.Japan 4. China 1.Japan 2. USA 3.UK 4. France 1.USA 2. UK 3.China 4. Japan

3. The daily volume of global foreign exchange rate turnover per day in 2016 was approximately:

$4,000 million $6,000 million $4,000 billion $6,000 billion

4. Which of the following represents the countries with the largest outstanding public debt in 2016?

1.USA 2.Japan 3. China 4. UK 1.Japan 2.USA 3. Italy 4. France 1.Japan 2.USA 3.France 4. Germany 1.USA 2. Japan 3.UK 4. Italy

5. Which of the following countries has the largest amount of commercial bank assets in 2016?

Japan USA UK China

6. Which one of the following had the largest Assets under management in the USA in 2016?

Mutual funds Insurance funds Pension funds Hedge funds

7. Which one of the following regions had the highest annual number of derivative contracts traded in 2015?

North America Latin America Europe Asia Pacific

8. Securitization is the process of:

creating new securities creating a security which is backed from a stream of cash flows from a pool of pre-existing assets and receivables. of securing the value of a security by guaranteeing payment in the event of a default reducing the number of securities issued by a company

9. A key feature of Islamic Finance is:

the absence of interest payments that it is carried out only in Islamic countries that it is carried out only by Islamic based banks all products sold have to be approved by the Bank for International Settlements

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