Question

QUESTION 2: MCQ

The concept of tenor matching is realized when _____ assets are financed by _____ funds and _____ assets are financed by _____ funds.

1. Short-term, long-term, long-term, short-term
2. Long-term, short-term, short-term, long-term
3. Short-term, short-term, long-term, short-term
4. Short-term, short-term, long-term, long-term

2. Money kept aside and not included in the banking system is called:

1. Hoard money
2. Saved money
3. Fresh fund
4. None of the above

3. An Egyptian company importing notebooks from abroad would request the following type of guarantee from the exporter to ensure that Egyptian company will only pay for the goods delivered if they match the required specifications:
   1. Letter of guarantee
   2. Letter of credit
   3. Promissory note
   4. Cheque

4. According to CBE data, the largest sector providing saving accounts & deposits funding to the Egyptian banking system, in local and foreign currency deposits is the ______ .
   1. Public business sector
   2. Household sector
   3. Private business sector
   4. Non-resident sector

Answer 1

1) Tenure matching is when short term assets are funded by short term funds and long term assets are funded through long term funds.

So answer is Short-term, short-term, long-term, long-term

2) Answer= Hoard money

Saved money is money saved in banking system

Fresh fund are new fund infused through investment in banking system.

3) Answer= Letter of credit

Letter of credit=a letter issued by a bank to another bank (especially one in a different country) to serve as a guarantee for payments made to a specified person under specified conditions

Letter of Guarantee=A letter of guarantee is a document issued by your bank that ensures your supplier gets paid for the goods or services it provides to your company, in the event that your company itself can't pay.

Promissory note=a signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand.

Cheque=order to bank to pay the sum from the drawers account on specially printed form.

4) Answer is Household sector