FM Chapter 2 Questions – The financial management environment
Reader Interactions
Comments
Leave a Reply
You must be logged in to post a comment.
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
20% off ACCA & CIMA Books
OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>
Thank you for your efforts, Sir.
I am pressing the finish button but is not reacting so, I can not continue to the next quiz.
Go to the list of all the quizzes on the main Paper FM page and select from there the quiz you want to attempt.
I assume that you are watching the relevant free lectures before attempting each of the quizzes?
Thank you for the Tests. So helpful. But on question 5 why is it Semi strong efficient???
Because that is the definition of semi-strong efficient (as explained in the free notes and lectures).
Thank you for the test!
this helps to refresh your mind. thanks
🙂
Thank you for the quiz.
Hi John,
First of all, thanks a lot for the useful resources that you provide!
Secondly, I have a question about Question 2 in this quiz – I somehow fail to understand why the Stock Exchange is not considered to be a financial intermediary. Stock Exchanges provide valuable services for stock trading, for example, clearing of transactions, and guaranteed settlement of transactions (i.e., if one of the parties to a transaction defaults, the exchange guarantees to uphold the transaction).
It would be interesting to hear your thoughts about this.
Many thanks,
Rachita
Thank you for your comment 🙂
Although the stock exchange does provide a service to shareholders wishing to buy or sell shares in specific companies, it is not regarded as a financial intermediary because it does not provide the three main services of a financial intermediary i.e. aggregation, maturity transformation, and diversification of risk as explained in my free lectures on Chapter 2 of our free lecture notes. For example, although an investor can diversify their risk by buying shares in several companies the stock exchange does not do that for them. Whereas if an investor buys shares in a unit trust (mutual fund) then the unit trust is doing the risk diversification for them.
Hi John,
Thanks for putting this in the right context! Previously I was under the impression that the features of aggregation, maturity transformation, and diversification of risk were somehow only applicable to banking institutions.
Best wishes, Rachita
You are welcome 🙂
Why Question no 5 is semi strong as it should be strong form as we have all the information required which means both published and unpublished??
No – it is semi-strong. Publicly available means that it has been published (and does not include unpublished information).
The quiz review on question 3 should be amended to read “other than” that of…..
A good one. Thanks
Thank you for your comment 🙂
Is there a way we can check the questions we didn’t get right?
Of course. Click on ‘submit all’ and then click on ‘review quiz’.
For Question number 5 why is it not a strong form and yet in a strong form the current and future information is available to the public?.
Because the semi-strong form efficiency only deal with information that is currently publicly available and not future information.
can you add some more questions?
No – you really must buy a Revision Kit from one of the ACCA approved publishers. They are full of exam standard questions.
By any chance, can such easy questions appear in exams?
Of course! These are from past exams.
But have you tried the tests on the other chapters that involve calculations?
Always in the exam, there are questions on some areas that you should find easy and questions on other areas that you will find a lot harder.
In addition to attempting our tests you should of course be attempting every question in your Revision Kit – then you will know the overall level of difficulty.
great test. Love to see more questions 🙂
Thank you 🙂
However these will only ever be short tests and you must buy a Revision Kit from one of the ACCA approved publishers. They contain lots of exam standard questions.
can’t see anything to download
There is nothing to download!!!
This is an online test.
Please sir why is the answer to question No. 5, weak-form efficiency. I thought it should be semi-strong form, since the informations are publicly available.
Adenikinju Says, please recheck your answer. It’s correct answer is “Semi-strong” form.
Correct 🙂