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Class 12 Business Studies Chapter 10 Financial Markets Quiz 19 (60 MCQs)

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1. All things held equal, what happens to the stock market, if the Central bank raises interest rates?
2. In a primary issue of shares to the public, the issuing company has to offer a minimum of ..... shares to the public
3. Which short-term (up to one year) instrument is issued by government as a means of financing it's cash requirements?
4. Which of the following is NOT listed as a financial institution operating in the money market?
5. What is a significant function of investment banks?
6. Which of the following institutions is responsible for stability of the Australian financial system?
7. Which of the following is the central bank in the UK?
8. Banks that suffered significant losses in the 1980s made the mistake of
9. The nominal interest rate is composed of:
10. Underwriting is a guarantee for marketability of .....
11. Which type of foreign investment is typically more volatile?
12. Which of the following would a bank NOT hold as insurance against the highest cost of deposit outflow-bank failure?
13. How does the Dow Jones Industrial Average reveal trends in the stock market?
14. Which is not a regulatory function of SEBI?
15. Which of the statements about the concept of relative interest rates is NOT TRUE?
16. What does "volume" mean?
17. Secondary market is also known as
18. How can one avoid falling victim to herd mentality?
19. Time deposit that states the amount of the deposit, the maturity, and the rate of interest being paid
20. The capital market encourages the growth of:
21. ABC Corporation creates and sells additional stock to the investment banker Pilipino Bank. Pilipino Bank then resells the issue to the Philippines public through its mutual funds. This transaction is an example of a(n)
22. The term 'T' in settlement means:
23. What happens when you buy a stock?
24. Which tends to be riskier, stocks or bonds?
25. Which of the following problems have been eliminated by Depositories?
26. Calculate the value 4 years hence of a deposit of Rs. 1, 000 made today if the interest rate is 8% (compounded annually).
27. RK Enterprise Limited has sold an entire lot of 6, 00, 000 equity shares @ ₹ 9 each to People's Bank Pvt Ltd ..... The Bank inturn will offer the shares to general public for subscription @ ₹ 11 per share. Identify the method of floatation used here
28. According to the quantity theory of money, the value of money is determined by the supply of money, the rate at which money circulates, and:
29. ..... refers to a period of time during which the stock market steadily rises.
30. In primary markets, first time issued shares to be publicly traded, in stock markets is considered as
31. Type of financial securities that mature in less than a year are classified as
32. The primary market deals with:
33. Hedging and speculative investments are the key characteristics of
34. Forex market primarily deals with:
35. What are stocks that represent ownership shares in corporations called?
36. I have deposited 25, 000 USD in a bank, on a 6 month deposit at an annual rate of 5.25%, interest is paid by the bank every three months to the same deposit account. How much is worth my account at the end of the 6 month period?
37. From the following find out fund based financial service
38. Which financial market is characterized by the buying and selling of commodities such as gold, oil, and agricultural products?
39. Which of the following are short-term financial instruments?
40. Unsecured money market instrument
41. If a bank has $ 10 million of checkable deposits, a required reserve ratio of 10 percent, and it holds $ 2 million in reserves, then it will not have enough reserves to support a deposit outflow of
42. What are the 2 tasks of the SEC?
43. A bonus share announced by a company:
44. The future value of a Rs.12, 000 investment, which gives an annual rate of return of 10% per annum, after two years would grow to .....
45. Stock exchange provides information to educate the people about investing in share markets, which function of stock exchange is referred to here?
46. Money can be described as follows, except:
47. The main distinction between securities sold in the primary market and that in the secondary market is the:
48. The supply curve for labor in a purely competitive market is upwardly sloping because the
49. How do commercial banks primarily generate funds?
50. What is the vital function of financial markets?
51. An investor gives up Rs.1000 today and expects to consume Rs.1040 in the future. What if the price level in the economy goes up by 6%? To maintain the consumption of Rs.1040, the interest earned must be ..... per cent.
52. What is the term for the risk that an investment may not be easily sold or converted to cash without a significant loss in value?
53. The individual firm that hires labor under purely competitive conditions faces a supply curve for labor that
54. Present Commerce Minister of India
55. What is a stock market?
56. Because of their ..... liquidity, ..... U.S. government securities are called secondary reserves.
57. Which of the following is not true about Exchange Traded Funds (ETF)?
58. The questions to be asked are as follows:1. The rate at which the average price of goods and services in an economy increases over a period of time is called as .....
59. The amount of checkable deposits that banks are required by regulation to hold are the
60. All of the following are basic components of bonds EXCEPT
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