Class 12 Business Studies Chapter 10 Financial Markets Quiz 5 (60 MCQs)

Quiz Instructions

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1. Which of the following share issue will bring fresh equity funds to the company.
2. Does a bear market mean the stock market is rising or going down?
3. A DEFFERED INTEREST BOND PAYS ALL ITS COUPONS IN THE FIRST TWO YEARS OF ITS TENOR
4. Circuit breakers are triggered when index rises/fall by
5. In the parlance of economy/commerce, what is "gilt-edged" market?
6. What is the amount of interest collected from a $ 5, 000 loan after three years with a simple interest rate of 6%?
7. By utilizing ..... , an investor can earn profits by buying bonds at a cut rate.
8. A bank is insolvent when
9. In general, banks would prefer to acquire funds quickly by ..... rather than .....
10. Through correspondent banking, large banks provide services to small banks, including
11. From 1876 to 1913, exchange rates were dictated by the ..... Each currency was convertible into gold at a specified rate. Thus, the exchange rate between two currencies was determined by their relative convertibility rates per ounce of gold. Each country used gold to support its currency.
12. What is the purpose of the stock market?
13. Which is the first commercial bank in India to launch a mutual fund?
14. Money market deals in ..... securities.
15. ..... is based on the uncertain event whose result determined by chance or accident
16. Investors with risk-loving characteristics will purchase securities with higher expected returns, lesser risks, and more liquidity. Do you agree with this statement?
17. Why is Bank Nifty considered an important index?
18. Which statement is correct in context of mutual fund
19. Pihak yang menyediakan barang modal dalam perjanjian leasing disebut
20. The fact that investors cannot distinguish good from bad companies leads to:
21. The rate of return on a corporate, municipal, or government bond is its .....
22. The quantity theory suggests a direct relationship between the money supply and:
23. Certificates of deposits (CDs) are a common investment because they:
24. A private placement allows a firm to raise funds from a limited number of investors without a public offering.
25. What is defined as the desire of people to hold money to satisfy short-term purchases?
26. They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.
27. What is defined as the degree to which an asset can be converted into cash?
28. Which of the following institutions promotes industrial finance in India?
29. Which of the following organization is the regulator of mutual funds in India
30. Which one of the following has members rather than customers?
31. The spot exchange rate is the rate at which a foreign exchange dealer converts one currency into another currency on a .....
32. Types of Speculators
33. Money paid to you by a financial institution when you deposit funds there. (How do you make money from bonds/cd's/savings accounts?)
34. Stock Exchange works as a mechanism for valuation of securities through the forces ofdemand and supply. Identify the related function of performed by the stock exchanges.
35. What are dividends?
36. An alternative method for estimating a stock price is to multiply the firm's earnings per share times the industry price earnings ratio. However, this ratio cannot be adjusted up or down to reflect specific characteristics of the firm.
37. The Index of NSE is called .....
38. The short term financial market is called the
39. In the equation MV = PT, 'V' stands for:
40. What is the primary goal of speculators in financial markets?
41. What are the main components of the Indian financial system?
42. A bank with insufficient reserves can increase its reserves by
43. Which type of insurance is specifically designed to cover damages to vehicles?
44. What is the relationship between savers and borrowers in financial markets?
45. Institutions such as banks that collect funds from savers that can be loaned to borrowers are known as
46. Which of the following is a NOT possible advantage of direct financing?
47. Type of stock which is owned by few people, usually the companies' managers and not actively traded.
48. The Apex Body who controls the Capital Market of our country is
49. Why do people invest in the stock market?
50. Which type of trader holds assets for weeks to months based on fundamental analysis?
51. High interest rates encourage businesses to invest more .....
52. FINRA is a Government Organization that oversees the SEC
53. Which of the following is a feature of junk bonds?
54. What may cause government bond yields (interest rates on debt) to rise?
55. Weak-form market efficiency implies that:
56. How do bonds function within financial markets?
57. Which of the following is an example of a money market instrument?
58. If M=100, V=5, and T=250, what is P according to the quantity theory of money?
59. Money market mutual funds can invest in .....
60. What type of information can be displayed in the Market Watch Window?