Free CIMAPRA17-BA1-1 Exam Braindumps (page: 58)

Page 58 of 118

Which of the functions of a financial intermediary is described by the following statement 'converts a flow of short-term deposits into a supply of long term loans'?

  1. Aggregation
  2. Risk management
  3. Maturity transformation
  4. Introducing borrows and lenders

Answer(s): C



Identify in the following list the statement that does not describe a function of a financial intermediary:

  1. Aggregation of funds
  2. Maturity transformation
  3. Risk transformation
  4. Transfer payments

Answer(s): D



Which of the following are not classed as a non-bank financial intermediary?

  1. Life insurance companies
  2. Building societies
  3. Finance houses
  4. Investment exchanges

Answer(s): D



All of the following are functions of central banks except which one?

  1. Banker to the commercial banks
  2. Holder of the foreign exchange reserves
  3. Banker to the government
  4. Determination and conduct of fiscal policy

Answer(s): D



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