This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 29 (34 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following are securities? A) A certificate of deposit. B) A share of Vinatex Danang Joint Stock Company common stock. C) A treasury bill. D) All three choices provided. Show Answer Correct Answer: D) All three choices provided. 2. Primary market is a market where securities are traded in the A) Second Time. B) First Time. C) Three Time. D) Several Times. Show Answer Correct Answer: B) First Time. 3. Zero coupon bonds are redeemed at the A) Discount. B) Face value. C) Premium. D) None of the above. Show Answer Correct Answer: B) Face value. 4. Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time. A) Depositing. B) Investing. C) Time Value of Money. D) Withdrawing. Show Answer Correct Answer: B) Investing. 5. Identify the method of floatation in Primary Market:Karro Limited has decided to sell its entire new issue of shares to a mutual funds company. A) Private Placement. B) Offer through Prospectus. C) Offer for Sale. D) Rights issue. Show Answer Correct Answer: A) Private Placement. 6. What does "SEC" stand for? A) Southeastern Conference. B) Securities and Energy Commission. C) Stock Market and Exchange Commission. D) Securities and Exchange Commission. Show Answer Correct Answer: D) Securities and Exchange Commission. 7. What is considered to be the safest type of bond? A) Municipal Bond. B) Corporate Bond. C) Treasury Bond. D) Convertible Bonds. Show Answer Correct Answer: C) Treasury Bond. 8. Money market securities have all the following characteristics except they are not A) Low risk. B) Short term. C) Very liquid. D) Money. Show Answer Correct Answer: D) Money. 9. What is it called when many different types of stock are pooled together? A) Bond. B) Mutual fund. C) Stock. D) Index fund. Show Answer Correct Answer: B) Mutual fund. 10. The Council of Financial Regulators is: A) A non-statutory body. B) Responsible for implementing new financial laws. C) The final decision-maker on financial reforms. D) Made up of five regulatory bodies. Show Answer Correct Answer: A) A non-statutory body. 11. Assuming an efficient market with no surprise information, the most likely impact on the share price of a company after paying dividend will be: A) The price of the share must remain unchanged. B) The price must increase irrespective of the divided paid or not. C) The price of the share must decrease by the same amount of dividend paid. D) The price of the share must increase by the same amount of dividend paid. Show Answer Correct Answer: C) The price of the share must decrease by the same amount of dividend paid. 12. Amount paid for money borrowed or lent. A) Security. B) Discount. C) Interest. D) Bond. Show Answer Correct Answer: C) Interest. 13. Inter bank fund requirement in the short run is met by A) Certificate of deposit. B) Call money. C) Treasury bill. D) Commercial bill. Show Answer Correct Answer: B) Call money. 14. What are the two methods of issuing securities in the primary market? A) Direct listing and auction. B) Initial coin offering and crowdfunding. C) Bond issuance and stock buyback. D) Public offering and private placement. Show Answer Correct Answer: D) Public offering and private placement. 15. Market price of a stock is the price at which the stock would sell if all investors had all knowable information about a stock. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 16. Typically, the interest rate on corporate bonds will be ..... the more restrictions are placed on management through restrictive covenants, because ..... A) Higher; corporate earnings will be limited by the restrictions. B) Higher; the bonds will be considered safer by bondholders. C) Lower; corporate earnings will be higher with more restrictions in place. D) Lower; the bonds will be considered safer by buyers. Show Answer Correct Answer: D) Lower; the bonds will be considered safer by buyers. 17. The network of savers, investors, financial institutions, and financial assets is known as the A) Credit Union. B) Equities market. C) Stockbroker. D) Financial system. Show Answer Correct Answer: D) Financial system. 18. Which one is these is a capital market instrument? A) Certificate of Deposit. B) Commercial Bill. C) Commercial Paper. D) Bonds. Show Answer Correct Answer: D) Bonds. 19. Pembelian dan penjualan seketika mata uang di pasar yang berbeda untuk mendapatkan keuntungan disebut ..... A) Spekulasi mata uang. B) Hedging. C) Arbitrase mata uang. D) Konversi mata uang. Show Answer Correct Answer: C) Arbitrase mata uang. 20. With a ..... , the savings of many individuals are pooled together and invested in a variety of stocks, bonds, and other financial assets. A) Mutual fund. B) Municipal bond. C) Call option. D) None of the above. Show Answer Correct Answer: A) Mutual fund. 21. Debt Instrument are issued by Corporate Houses are raising short term financial resources from the money market are called ..... A) Certificate of Deposit. B) Government Securities. C) Treasury Bills. D) Commercial Paper. Show Answer Correct Answer: D) Commercial Paper. 22. Profits made from investments are reported as ..... A) Bear Markets. B) Bull Markets. C) Capital Losses. D) Capital Gains. Show Answer Correct Answer: D) Capital Gains. 23. Financial market participants who provide funds are called A) Deficit units. B) Surplus units. C) Primary units. D) Secondary units. Show Answer Correct Answer: B) Surplus units. 24. Financial assets are generically classified into two broad categories: A) Debt & Equity. B) Bonds and deposits. C) Real estate & gold. D) Equity & gold. Show Answer Correct Answer: A) Debt & Equity. 25. ..... represents claim for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend A) Financial Asset. B) Physical asset. C) Cash asset. D) None of these. Show Answer Correct Answer: A) Financial Asset. 26. Starx Enterprises stock is currently RM26.50 per share. You expect that earnings next year will be RM2 per share and it should pay a RM1 dividend. You find that the P/E multiple is 15 times on average. Determine the stock price you would expect for the company. A) RM35.00. B) RM30.00. C) RM15.00. D) RM13.50. Show Answer Correct Answer: B) RM30.00. 27. What is the main purpose of foreign exchange controls imposed by a government? A) To encourage foreign investments. B) To stabilize the local currency and manage the balance of payments. C) To increase domestic production. D) To simplify international trade processes. Show Answer Correct Answer: B) To stabilize the local currency and manage the balance of payments. 28. What is the main risk associated with investing in commodity ETFs? A) Illiquidity of the ETF shares. B) Lack of diversification. C) Price volatility of underlying commodities. D) High management fees. Show Answer Correct Answer: C) Price volatility of underlying commodities. 29. This institution requires you to be a member A) Banks. B) Credit Unions. C) Savings and Loans. D) Payday Loan Company. Show Answer Correct Answer: B) Credit Unions. 30. Which of the following statements is not true with regard to stock exchange? A) It provides a platform for buying and selling of new securities. B) It curbs the marketability of the securities. C) By providing a ready market, it extends liquidity to the securities. D) It provides a platform for buying and selling of old securities. Show Answer Correct Answer: B) It curbs the marketability of the securities. 31. What is the main advantage of the Snap Quote window? A) It provides detailed data on multiple securities at once. B) It allows quick access to information on a single security without navigating away from the current screen. C) It allows placing orders. D) It provides real-time updates on market prices only. Show Answer Correct Answer: B) It allows quick access to information on a single security without navigating away from the current screen. 32. A sinking fund contains funds set aside by the issuer of a bond to pay for the redemption of the bond when it matures. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 33. When the bank deducts the interest in advance, it is ..... A) Discounting. B) Changing value. C) Interest-bearing. D) Deposit-taking. Show Answer Correct Answer: A) Discounting. 34. Which of the following reasons is not responsible for the ups and downs in the Sensex? A) Rain. B) Monetary Policy. C) Political instability. D) None of the above. Show Answer Correct Answer: D) None of the above. ← PreviousRelated 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