Fill in the blank: Financial intermediaries primarily function to transfer funds from ___ to ___.

Surplus units to deficit units

True or False: The capital market is intended for short-term financing needs.

False. The capital market is designed for long-term financing needs.

Identify the four main components of a financial market.

The four main components of a financial market are the money market, capital market, foreign exchange market, and credit market.

Fill in the blank: Pension funds are crucial for ___ as they pool resources to provide retirement benefits.

Accumulating savings for retirement

Short Answer: What is the role of financial services in the context of financial intermediaries?

Financial services aid asset management.

• Facilitates transactions efficiently.

• Provides investment advice strategically.

• Helps meet financial needs effectively.

How do financial instruments contribute to the functioning of financial markets?

Financial instruments facilitate market functions.

• They enable capital flow.

• Support investment opportunities.

• Represent claims on assets.

What is the minimum reserve system in the context of currency note issuance?

Minimum reserve system enables note issuance.

• Supports currency stability.

• Requires backing by securities.

• Ensures liquidity in economy.

Explain the significance of micro-finance in poverty reduction.

Micro-finance reduces poverty effectively.

• Access to credit empowers borrowers.

• Savings help manage financial risks.

• Improves quality of life sustainably.

Fill in the blank: A financial market acts as an intermediary between those who need money and those who want to ___ their surplus funds.

Invest