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Class 12 Business Studies Chapter 10 Financial Markets Quiz 13 (60 MCQs)

Quiz Instructions

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1. What is the main focus of capital markets?
2. What is the main purpose of insurance in financial planning?
3. Dua jenis pasar dalam sekuritas modal dilihat dari metode perdagangannya adalah ..... dan .....
4. What is a bond or preferred stock that gives the holder the right to exchange it for common stock called?
5. Which of the following markets deal in securirties with maturity of less than one year?
6. A collection of financial assets is often called
7. Who issues tax exempt municipal bonds?
8. Which channel is considered as the flow of fund without intermediaries?
9. Which segment of the financial market deals with instruments maturing in less than a year?
10. Complete the sentenceDue to stock splits and other factors discussed in class, stock price
11. ..... is defined as the amount paid to purchase a bond that will be repaid at maturity.
12. What is the role of financial intermediaries in the circular flow of the financial system?
13. How does a steep yield curve help annuity providers?
14. What is the amount that a bond issuer owes the bondholder at maturity called?
15. What is a formal IOU issued by a corporation or government called?
16. Which of the following cannot be called as a debt instrument as referred to in financial transactions?
17. What remains unchanged if you sell the bond to someone else?
18. It is a legally enforceable document which is issued by a stockbroker within 24 hours of the execution of a trade order.
19. A major limitation of the NAV approach is that it:
20. If banks do not have sufficient capital of what are they at risk if the value of their assets fall?
21. What is liquidity in financial markets?
22. What is defined as currency plus bank current deposits from the private non-bank sector?
23. Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach?
24. What is the main objective of financial services?
25. How do financial markets contribute to price discovery?
26. Determine the Bid/ask spread with the following given data:Currency is Japenese yen;Bid rate is $ 0.0070;Ask rate is $ 0.0074;What is the bid/ask percentage spread?
27. What are the major stock exchanges in the world?
28. Purchasing a stock by paying only a fraction of its price and borrowing the remainder of the purchase price is called
29. Which is not a component of the financial system?
30. What is the role of the Federal Reserve in financial markets?
31. The book value of a share is Rs.75. The price to book ratio of the share is 1.75. The market price of the share is
32. If a bank is determined to maintain or increase its lending what might it choose to do in the face of rising liquidity ratios?
33. ..... is a link between savers & borrowers, helps to establish a link between savers & investors
34. Which of the following share issue will not bring fresh equity capital to the company.
35. Primary market deals with selling of securities for the first time through the following method
36. Financial markets exist to
37. The Federal Deposit Insurance Company (FDIC) is a government agency that
38. A mutual fund that primarily invests in stocks is known as:
39. James Beck is considering purchasing ABC Berhad stocks. What price should he be willing to pay for it (in RM) if the company is expected to pay RM2 dividend in one year and the dividends to grow at 5 percent indefinitely? James requires a 12 percent return for this investment.
40. Asset transformation can be described as
41. A bond is a(n) ..... instrument.
42. A stock split is MOST likely to occur when
43. Stocks or shares that are sold to investors without transacting through financial institutions are classified as
44. One main responsibility of the stock exchange is to:
45. True or False:Stock values change daily.
46. Physical asset markets deal with stocks, bonds, notes, mortgages and derivative securities
47. Explain the importance of liquidity in financial markets.
48. What is the market where newly issued securities are traded?
49. What is a situation in which the outcome is not certain, but the probabilities can be estimated?
50. SEBI has introduced the Additional Surveillance Mechanism(ASM) for the stocks that were showing extra ordinary price swings. Stocks under this mechanism will be subject to 5% price filters i.e if the stock moves up or down 5%, trading activity in the stock will be halted for the rest of the session.
51. One of the financial institutions that operates by collecting premiums from clients is called .....
52. In the capital market, what is typically traded?
53. What is the role of a stock exchange?
54. What kind of relationship exists between the depositor and the bank?
55. The following are barriers to global integration EXCEPT
56. Debt Markets are regulated by
57. A nonprofit service that accepts deposits, makes loans, and provides other financial services is known as a
58. When a company declares bankruptcy, who is paid 1st?
59. Tax rate applicable to Individual investor who invest in other than equity oriented fund and holding period is more than 36 months
60. Which securities amongst these have proved to be a better bet against inflation?
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