This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 15 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Keisha deposited $ 400 in a savings account that pays a simple interest rate of 3.5% per year. If she made no other deposits or withdrawals, how much interest had she earned at the end of 3 years? A) $ 42. B) $ 14. C) $ 50. D) $ 28. Show Answer Correct Answer: A) $ 42. 2. A market that is involved in the trading of debt instruments such as government and corporate bonds, as well as has an involvement with the trading of packaged loan products that are sold to investors. A) Over-the-counter Market. B) Auction Market. C) Equity Market. D) Debt Market. Show Answer Correct Answer: D) Debt Market. 3. What is technical analysis in security analysis? A) Technical analysis focuses solely on company fundamentals and earnings reports. B) Technical analysis uses only economic indicators to predict market trends. C) Technical analysis is the evaluation of a company's management and business model. D) Technical analysis is the study of past market data, primarily price and volume, to forecast future price movements. Show Answer Correct Answer: D) Technical analysis is the study of past market data, primarily price and volume, to forecast future price movements. 4. Lembaga keuangan internasional yang bertugas memberikan pinjaman untuk pembangunan infrastruktur di negara berkembang adalah: A) IMF (Dana Moneter Internasional). B) WTO (World Trade Organization). C) World Bank (Bank Dunia). D) Asian Development Bank (ADB). Show Answer Correct Answer: C) World Bank (Bank Dunia). 5. ..... is defined as money an investor receives above and beyond the sum of money initially invested. A) Return. B) Stock. C) Bond. D) None of the above. Show Answer Correct Answer: A) Return. 6. Which of the following statements is not true with regard to Treasury bills? A) Are issued in the form of a promissory note. B) They are highly liquid and have assured yield. C) They carry high risk of default. D) They are available for a minimum amount of ₹ 25, 000 and in multiples thereof. Show Answer Correct Answer: C) They carry high risk of default. 7. The return of a share holder is A) Discount value. B) Dividend. C) RATE OF INTEREST. D) Discount rate. Show Answer Correct Answer: B) Dividend. 8. The main purpose of SEBI is to: A) Control monetary policy. B) Protect investors and promote market growth. C) Regulate insurance. D) Manage foreign reserves. Show Answer Correct Answer: B) Protect investors and promote market growth. 9. What do non-bank financial institutions (NBFIs) primarily focus on? A) Corporate mergers. B) Traditional banking services. C) Specialized services and products. D) Government regulations. Show Answer Correct Answer: C) Specialized services and products. 10. According to Keynes, which motive relates to holding cash for emergencies? A) Transaction motive. B) Speculative motive. C) Precautionary motive. D) Liquidity motive. Show Answer Correct Answer: C) Precautionary motive. 11. When individuals expect bond prices to fall, they will: A) Hold more money. B) Sell money in exchange for goods. C) Hold more bonds. D) Reduce M1 holdings only. Show Answer Correct Answer: A) Hold more money. 12. Siapa yang berfungsi sebagai pengawas kegiatan pasar modal di Indonesia? A) Kementerian Keuangan. B) Bursa Efek Indonesia (BEI). C) Bank Indonesia. D) Otoritas Jasa Keuangan (OJK). Show Answer Correct Answer: D) Otoritas Jasa Keuangan (OJK). 13. John is a trader and he deals with a basic good that is interchangeable with other commodities of the same type in his business. What is this type of good called? A) Dividend. B) Eurobond. C) Commodity. D) Liquid Asset. Show Answer Correct Answer: C) Commodity. 14. What is the term for the process of converting physical assets into cash without significant loss in value? A) Depreciation. B) Amortization. C) Liquidation. D) Collateralization. Show Answer Correct Answer: C) Liquidation. 15. The future value of a Rs.10, 000 investment done today, which gives an annual rate of return of 10% per annum, after two years would grow to ..... A) Rs. 12, 100. B) Rs. 12, 200. C) Rs. 12, 500. D) Rs. 12, 600. E) Not Attempted. Show Answer Correct Answer: A) Rs. 12, 100. 16. Stock refers to ..... A) Equity shares. B) Preference shares. C) Debenture. D) Bond. Show Answer Correct Answer: A) Equity shares. 17. SEBI is a regulator of A) Money Market. B) Overseas Market. C) Commodity market. D) Capital market. Show Answer Correct Answer: D) Capital market. 18. What is an investment objective? A) A formula used to calculate simple versus compound interest. B) A financial goal used to determine whether investments are appropriate. C) The final destination of an investor's money. D) A method of investing that involves cool, unemotional appraisal of stocks. Show Answer Correct Answer: B) A financial goal used to determine whether investments are appropriate. 19. What is the name of the financial services company that was demerged from Reliance and listed separately? A) Jio Financial Services. B) Reliance Finance Ltd. C) Reliance Banking & Trust. D) Reliance Capital. Show Answer Correct Answer: A) Jio Financial Services. 20. What is the role of a broker in a stock exchange? A) A broker manages a company's financial assets directly. B) A broker facilitates the buying and selling of stocks on behalf of clients. C) A broker is responsible for setting stock prices. D) A broker only provides financial advice to clients. Show Answer Correct Answer: B) A broker facilitates the buying and selling of stocks on behalf of clients. 21. Period of time after which time deposits will pay a stated rate of interest A) Savings. B) Interest. C) Maturity. D) None of the above. Show Answer Correct Answer: C) Maturity. 22. Select statement which is not true from below in regards of bonus shares A) The relative ownership of shareholders does not change. B) The price of each shares in the stock market falls. C) The Book Value of each shares goes up. D) The amount of shares issued goes up. Show Answer Correct Answer: C) The Book Value of each shares goes up. 23. NASDAQ (best answer) A) Index. B) Index & Exchange. C) Stock. D) Exchange. Show Answer Correct Answer: B) Index & Exchange. 24. What role do investment banks play in mergers and acquisitions? A) They help companies raise capital. B) They provide loans to individuals. C) They offer insurance products. D) They conduct market research. Show Answer Correct Answer: A) They help companies raise capital. 25. Which is the most common type of depository institution? A) Credit unions. B) Investment banks. C) Savings and loan associations. D) Commercial banks. Show Answer Correct Answer: D) Commercial banks. 26. A high credit rating implies ..... credit risk A) High. B) Low. C) All the above. D) None of the above. Show Answer Correct Answer: B) Low. 27. On this day, the exchange will deliver the share or make payment to the other broker A) Pay-in day. B) Pay-out day. C) Transaction day. D) None of the above. Show Answer Correct Answer: B) Pay-out day. 28. What is a key characteristic of financial assets traded in the money market? A) They offer a fixed interest rate for the term of the asset. B) They can only be traded internationally. C) They are insured by the government against loss. D) They are typically short-term with a maturity of a year or less. Show Answer Correct Answer: D) They are typically short-term with a maturity of a year or less. 29. Primary market is associated with ..... issues. A) Old. B) New. C) Old and New. D) Very Old. Show Answer Correct Answer: B) New. 30. The saving of money by an individual ..... A) Benefits the whole economy. B) Deprives others of money to invest. C) Lowers the standard of living. D) Benefits the saver only. Show Answer Correct Answer: A) Benefits the whole economy. 31. An agreement to buy or sell at a specific date in the future at a predetermined price is known as what? A) Equities. B) Capital market. C) Bond. D) Futures contract. Show Answer Correct Answer: D) Futures contract. 32. Which statement about M1 is correct? A) It includes fixed deposits. B) It includes chequing accounts. C) It excludes currency. D) It includes government bonds. Show Answer Correct Answer: B) It includes chequing accounts. 33. A borrower who takes out a loan usually has better information about the potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is called A) Asymmetric information. B) Noncollateralized risk. C) Moral hazard. D) Adverse selection. Show Answer Correct Answer: A) Asymmetric information. 34. All of the following are examples of financial intermediaries EXCEPT A) A credit union. B) A life insurance company. C) A stock certificate. D) A finance company. Show Answer Correct Answer: C) A stock certificate. 35. BSE was established in ..... and was ..... first stock exchange. A) 1875, Asia's. B) 1945, World;s. C) 1945, Asia's. D) 1875, World's. Show Answer Correct Answer: A) 1875, Asia's. 36. The money market primarily deals with: A) Shares and debentures. B) Long-term government bonds. C) Short-term funds, usually less than one year. D) Foreign direct investment. Show Answer Correct Answer: C) Short-term funds, usually less than one year. 37. Payments made to shareholders of a company's stock are called? A) Coupon. B) Interest. C) Dividend. D) None of the above. Show Answer Correct Answer: C) Dividend. 38. The "lemons problem" is a term used to describe the A) Free-rider problem. B) Principal-agent problem. C) Adverse selection problem. D) Moral hazard problem. E) Both A and B of the above. Show Answer Correct Answer: C) Adverse selection problem. 39. Which of the following is a fund-based financial service? A) Advisory services. B) Advisory services. C) Merchant banking. D) Leasing. Show Answer Correct Answer: D) Leasing. 40. While the SEC and FINRA both share the role of protecting investors, key differences between the two include: A) The SEC regulates Security Markets and FINRA regulates Brokers and firms. B) The SEC regulates public corporations only, FINRA deals solely with private companies. C) The SEC is a for-profit private organization and FINRA is a non-profit government agency. D) All of the Answers are correct. Show Answer Correct Answer: A) The SEC regulates Security Markets and FINRA regulates Brokers and firms. 41. The physical site where shares are purchased and sold face-to-face on the trading floor. A) Stock Exchange. B) Future Contract. C) Puttable. D) Callable. Show Answer Correct Answer: A) Stock Exchange. 42. A five-year security was purchased two years ago by an investor who plans to resell it. The investor will sell the security r in the: A) Surplus market. B) Secondary market. C) Deficit market. D) Primary market. Show Answer Correct Answer: B) Secondary market. 43. How many times a security can be sold in a secondary market? A) Only one time. B) Three times. C) Multiple times. D) Two time. Show Answer Correct Answer: C) Multiple times. 44. What is owned by stockholders and operated for profit? A) Commercial Bank. B) Mutual Savings Bank. C) Credit Union. D) Savings and loan association. Show Answer Correct Answer: A) Commercial Bank. 45. What is an Index? A) A basket of shares. B) An indicator of market movement. C) An indicator of the economic conditions of the country. D) All of the above. E) Not Attempted. Show Answer Correct Answer: D) All of the above. 46. Yang tidak termasuk komponen pada pasar keuangan internasional adalah ..... A) Obligasi internasional. B) Bisnis internasional. C) Pasar eurocurrency. D) Ekuitas internasional. Show Answer Correct Answer: B) Bisnis internasional. 47. Which of the following is NOT a component of the Fisher effect? A) Expected inflation. B) Nominal risk-free rate. C) Real GDP. D) Real risk-free rate. Show Answer Correct Answer: C) Real GDP. 48. Located at Times Square, this exchange is electronic and trades mostly technology-related stocks. A) NYSE. B) Over the counter. C) DJIA. D) NASDAQ. Show Answer Correct Answer: D) NASDAQ. 49. Which type of short term debt instruments are issued by the Ministry of Finance of Bulgaria: A) Treasury bonds. B) Treasury bills. C) Commercial paper. D) Treasury notes. Show Answer Correct Answer: B) Treasury bills. 50. Which of the following regulators would be responsible for providing liquidity to banks in the event of a financial crisis? A) ASIC. B) RBA. C) CFR. D) APRA. Show Answer Correct Answer: B) RBA. 51. Bank ..... is/are listed on the liability side of the bank's balance sheet. A) Reserves. B) Capital. C) Cash items. D) Securities. Show Answer Correct Answer: B) Capital. 52. Which of these name expansions is right? A) NPCI-National Payments Corporation of India. B) PAYTM-Pay Through Mobile. C) CRED-Credit Redemption Enabled Dashboard. D) BHIM-Bharat Interface for Money. Show Answer Correct Answer: C) CRED-Credit Redemption Enabled Dashboard. 53. A banker's acceptance is A) A method to help importers evaluate the creditworthiness of exporters. B) An add-on instrument. C) For greater than one year maturity. D) A time draft drawn on the exporter's bank. E) A liability of the importer and the importer's bank. Show Answer Correct Answer: E) A liability of the importer and the importer's bank. 54. Financial market facilitates business firms A) To minimize fund requirement. B) To make more sales. C) To recruit workers. D) To rise funds. Show Answer Correct Answer: D) To rise funds. 55. They serve as intermediaries in the foreign exchange market by exchanging currencies desired by MNCs or individuals and include large commercial banks such as Citigroup (United States), JPMorgan Chase & Co. (United States), Barclays (United Kingdom), UBS (Switzerland), and Deutsche Bank (Germany). A) Foreign exchange cartels. B) Foreign exchange despository. C) Foreign exchange dealers. D) Foreign exchange remittance. Show Answer Correct Answer: C) Foreign exchange dealers. 56. Net profit after taxes per dollar of assets is a basic measure of bank profitability called A) Return on equity. B) Return on assets. C) Return on investment. D) Return on capital. Show Answer Correct Answer: B) Return on assets. 57. Which of the following factors does NOT directly affect financial markets? A) Government policies. B) Interest rates. C) Inflation rate. D) Literacy rate. Show Answer Correct Answer: D) Literacy rate. 58. The market for buying and selling of commercial Bills of Exchange is known as a ..... A) Commercial Bill Market. B) Commercial Paper Market. C) Treasury Bill Market. D) Capital Market. Show Answer Correct Answer: A) Commercial Bill Market. 59. Which is term of where buyers and sellers of securities meet in one central location to conduct trades? A) Exchange. B) Barter system. C) Transactions. D) Over the counter. Show Answer Correct Answer: A) Exchange. 60. Most savings institutions in the United States A) Insure deposits over $ 1 millon. B) Charge a fee for insurance. C) Are not insured. D) Insure up to $ 100, 000. Show Answer Correct Answer: D) Insure up to $ 100, 000. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Business Studies Chapter 10 Financial Markets Quiz 1Class 12 Business Studies Chapter 10 Financial Markets Quiz 2Class 12 Business Studies Chapter 10 Financial Markets Quiz 3Class 12 Business Studies Chapter 10 Financial Markets Quiz 4Class 12 Business Studies Chapter 10 Financial Markets Quiz 5Class 12 Business Studies Chapter 10 Financial Markets Quiz 6Class 12 Business Studies Chapter 10 Financial Markets Quiz 7Class 12 Business Studies Chapter 10 Financial Markets Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books