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Class 12 Business Studies Chapter 10 Financial Markets Quiz 4 (60 MCQs)

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1. What is the yield of a bond?
2. The Net Asset Value (NAV) approach values a company by:
3. The reserves of a company rightfully belong to .....
4. WHAT RISK FACTOR IN BONDS FORCES MOST RETAIL INVESTOR TO HOLD THEM IN MATURITY
5. The oldest stock exchange in India is
6. Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement.
7. Sarbanes Oxley was instituted as a direct result of:
8. Banks bring together .....
9. What is the minimum amount that can be invested in Treasury Bills?
10. On the liquidity spectrum, which asset is placed as the least liquid?
11. The book building process in an IPO helps to:
12. RBI issue 91-day Treasury bills in an auction where the cut off price was Rs. 98.75 what is the implied yield of the instrument???
13. Which of the following is NOT a type of financial market?
14. When securities are allotted to institutional investors & some selected individuals is referred to as .....
15. Which of the following enterprise organisations is allowed to distribute profit in the form of dividend?
16. The primary reason that individuals and firms choose to borrow long-term is to
17. The safer the debt instrument, the ..... is the rate of interest.
18. Explain the relationship between risk and return.
19. What type of market has a physical location and is used by large corporations for equity trading?
20. What does the term 'liquidity' refer to in financial markets?
21. Imagine you are an investor looking for a market where you can trade debt instruments such as government and corporate bonds, and also deal with packaged loan products that are sold to investors. Which market would you be involved in?
22. What is an organisation that takes money from households or firms and lends it to other households or firms?
23. A jobber quotes two prices:a high price for selling and a lower price for:
24. 10) What is it called when you loss money on stocks you have purchased.
25. At 10% annual inflation rate, an item costing Rs. 100 today, would cost Rs ..... after two year.
26. Secondary markets help support primary markets because secondary markets I. offer primary market purchasers liquidity for their holdings. II. update the price or value of the primary market claims. III. reduce the cost of trading the primary market claims.
27. Which of the following statements is not true with regard to capital market?
28. Banks may borrow from or lend to another bank in the Federal Funds market. A loan of excess reserves from one bank to another bank is recorded as a(n) ..... for the borrowing bank and a(n) ..... for the lending bank.
29. What is the difference between spot markets and future markets?
30. Which of the following is not a reason for the need for debt securitization? A) Liquidity improvementB) Risk transfer C) Interest rate control D) Capital adequacy compliance
31. Government securities carry practically no risk of ..... and, hence, are called risk-free or gilt-edged instruments
32. It is where real property (property with more or less permanent life-like land, buildings, and big machinery) is used to guarantee or secure big loans.
33. What is an initial public offering (IPO)?
34. A network of savers, investors, financial assets, and financial institutions that work together to transfer savings to investment uses
35. The NASDAQ is where all trading happens
36. Treasury Bills are issued in the form ..... note
37. Which rate of return accounts for intra-year compounding?
38. The semi-strong form of EMH states that share prices reflect:
39. The price band in book building is decided by .....
40. Which is of these is not a way in which retail banks raise finance?
41. Large Cap Stocks means
42. In which type of market do investors trade previously issued securities, like stocks or bonds?
43. Your security analysis indicated that the company has lot of potential for growth in the futures. You decided to purchase the shares of the particular company with a long-term investment target. Your investment strategy can be recognized as
44. Mengapa Treasury Bonds memiliki bunga yang rendah?
45. Investment analysts recommend people to make investments in .....
46. Spot Market is a market where the delivery of the financial instrument and payment of cash occurs
47. ..... is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form.
48. A short term debt obligation backed by govt.with a maturity of less than 1 year.
49. Bank reserves include
50. Which of the following financial assets might be most likely to have an active secondary market?
51. According to the text, the forward rate is commonly used for:
52. What is the bid-ask spread?
53. Investment can be defined as commitment of funds in the present with an expectation of receiving
54. More Instability in Currency is called?
55. Which of the following is a stock exchange which features technology companies, and all trades are done on the computer?
56. Which of the following instruments are traded in a capital market?
57. Holding large amounts of bank capital helps prevent bank failures because
58. Which is the major part of financial system?
59. Capital Market is a market for
60. When $ 1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to hold any excess reserves but makes loans instead, then, in the bank's final balance sheet
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