Global MCQ Practice

🌐 Total MCQ
🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books

Class 12 Business Studies Chapter 10 Financial Markets Quiz 10 (60 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Business firms are more likely to borrow than to lend. True or false.
2. Type of markets where the exchange is made with an agreement to buy or sell a particular commodity or security at a predetermined price at a specified time in the future.
3. The bid/ask spread for small retail transactions is commonly in the range of ..... percent.
4. How do stock exchanges facilitate price discovery?
5. Equity financing involves the activities of
6. What is the primary function of the mortgage market?
7. A financial market is one that:
8. As a result of a bonus share issue
9. What is the strategy of investing in a wide variety of securities to reduce risk called?
10. Corporations pay out part of their profits in the form of a ..... to their stockholders.
11. The role of an investment banker includes all of the following except:
12. The important goal of the financial service industry is to mobilise and allocate .....
13. Which among the statements is NOT TRUE on the concept of relative inflation rate?
14. What is insider trading?
15. The physical place where buyers and sellers meet to trade stocks is known as the
16. A bank pays 7% interest on its 1-year deposit. The Price-to-earning ratio of the FD is:
17. Who ensures that all securities and funds are settled between broker and their customers who are buyers and sellers
18. Which of the following is the only correct example of a blue-chip stock?
19. If income increases while nominal money supply remains constant, equilibrium interest rate will:
20. ..... is maintained by an Exchange to make good investor claims, which may arise out of non-settlement of obligations by the trading member, who has been declared defaulter, in respect of trades executed on the Exchange.
21. If a client buys shares worth Rs. 4, 40, 000 and sells shares worth Rs. 5, 60, 000 through a broker, then the maximum brokerage payable to the broker is .....
22. Determine the Bid/ask spread with the following given data:Currency is British pound;Bid rate is $ 1.52;Ask rate is $ 1.60What is the bid/ask percentage spread?
23. What is an example of a debt security?
24. Participants in the capital market includes
25. The Sarbanes Oxley Act of 2002 mandates:
26. Good currencies are widely accepted by all in exchange for goods and services, eliminating a problem of barter. This enables money to act as .....
27. The stock exchange acts as a barometer for measuring:
28. A money market investment is based on .....
29. John is a new investor and he is learning about different types of markets. He came across a term which refers to a marketplace where trading of securities including equities, bonds, currencies and derivatives occurs. What is this market called?
30. What does IRA stand for?
31. What is the meaning of stock market indices?
32. A commercial bill is used to .....
33. This equilibrium price demand and supply of money is called .....
34. What is the main function of financial market?
35. Once stocks are on the market, which best explains how their prices are set?
36. Certificate of deposits (CDs)
37. The FPC is primarily responsible for .....
38. A market in which buyers and sellers negotiate and transact business directly, without any intermediary such as resellers.
39. Which of the following factors influence the movements in the cash rate?
40. What is the present value of the following payment stream, discounted at 11% annually:$ 3, 000 at the end of year 1, $ 4, 000 at the end of year 3, and $ 6, 000 at the end of year 5?
41. Banks earn profits by selling ..... with attractive combinations of liquidity, risk, and return, and using the proceeds to buy ..... with a different set of characteristics.
42. Which of the following is the function of Financial Market?
43. A 401k plan is a(n)
44. Each purchase occurring in the secondary markets increases the total stock of financial assets that exist in the economy.
45. It is an instrument of short-term borrowing by the Government of India maturing in less than one year.
46. A mean market when prices move down for several months or years in a row is known as a
47. NBFC does not Include
48. People who hold shares are known as .....
49. What is an example of a speculative transaction involving commodities?
50. True or false?The primary (new issue) market is where newly issued securities are sold by companies and governments.
51. These shares represent the true owners of the corporation.
52. How much must be invested today for $ 400 to be received 3 years from now, assuming an interest rate of 8%, quarterly compounding?
53. When stocks overall are rising, the market is called?
54. What does herd instinct refer to in financial markets?
55. Stock markets link the ..... units (that have excess funds) with ..... units (that need funds).
56. ..... is a market for lending & borrowing of short term funds.
57. A growth oriented investor will portray the following risk bearing capacity.
58. Book Building exercise through the NSE's on-line system offers the following benefits:
59. The difference between savings and investments is that
60. What type of financing occurs when a firm expands its operations by floating a new issue of shares on the ASX?
🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books