This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 10 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mengapa Treasury Bonds memiliki bunga yang rendah? A) Karena memiliki risiko yang cenderung fluktuatif. B) Karena suku bunga pasar produk investasi lainnya lebih tinggi. C) Karena permintaan untuk obligasi tersebut sangat tinggi. D) Karena dianggap sebagai investasi yang sangat aman dengan tidak ada resiko gagal bayar. Show Answer Correct Answer: D) Karena dianggap sebagai investasi yang sangat aman dengan tidak ada resiko gagal bayar. 2. Investment analysts recommend people to make investments in ..... A) Financial investments they understand. B) Financial investments that are financially complicated. C) Financial investments recommended to them by friends. D) Financial investments that promise the highest returns. Show Answer Correct Answer: A) Financial investments they understand. 3. Spot Market is a market where the delivery of the financial instrument and payment of cash occurs A) Immediately. B) In the future. C) Uncertain. D) After on month. Show Answer Correct Answer: A) Immediately. 4. ..... is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form. A) Materialisation. B) Rematerialisation. C) Conversion. D) Dematerialization. E) Not Attempted. Show Answer Correct Answer: D) Dematerialization. 5. A short term debt obligation backed by govt.with a maturity of less than 1 year. A) Treasury Bill. B) Bills of Payment. C) Certificate of Savings. D) Certificate of Ownership. Show Answer Correct Answer: A) Treasury Bill. 6. Bank reserves include A) Deposits at the Fed and short-term treasury securities. B) Vault cash and short-term Treasury securities. C) Vault cash and deposits at the Fed. D) Deposits at other banks and deposits at the Fed. Show Answer Correct Answer: C) Vault cash and deposits at the Fed. 7. Which of the following financial assets might be most likely to have an active secondary market? A) Common stock of a large firm. B) Bonds of a major, multinational corporation. C) Bank loans made to smaller firms. D) Debt issued by the U.S. Treasury. Show Answer Correct Answer: D) Debt issued by the U.S. Treasury. 8. According to the text, the forward rate is commonly used for: A) Hedging. B) Immediate transactions. C) Previous transactions. D) Bond transactions. Show Answer Correct Answer: A) Hedging. 9. What is the bid-ask spread? A) The difference between buying and selling prices. B) The total amount of currency traded. C) The cost of issuing bonds. D) The interest rate on loans. Show Answer Correct Answer: A) The difference between buying and selling prices. 10. Investment can be defined as commitment of funds in the present with an expectation of receiving A) Lesser funds in the future. B) Additional funds in the future. C) Same amount of funds in future. D) None of the above. Show Answer Correct Answer: B) Additional funds in the future. 11. More Instability in Currency is called? A) Currency Risk. B) Liquidity Risk. C) Financial Risk. D) Country Risk. Show Answer Correct Answer: A) Currency Risk. 12. Which of the following is a stock exchange which features technology companies, and all trades are done on the computer? A) The S & P 5000. B) NYSE. C) Dow Jones. D) Nasdaq. Show Answer Correct Answer: D) Nasdaq. 13. Which of the following instruments are traded in a capital market? A) Corporate bonds. B) U.S. Treasury bills. C) Negotiable bank CDs. D) Repurchase agreements. Show Answer Correct Answer: A) Corporate bonds. 14. Holding large amounts of bank capital helps prevent bank failures because A) It means that the bank has a higher income. B) It makes loans easier to sell. C) It can be used to absorb the losses resulting from bad loans. D) It makes it easier to call in loans. Show Answer Correct Answer: C) It can be used to absorb the losses resulting from bad loans. 15. Which is the major part of financial system? A) Financial market. B) Financial institutions. C) Financial securities. D) All of above. Show Answer Correct Answer: D) All of above. 16. NSE stands for: A) National Stock Exchange. B) National Securities Exchange. C) New Securities Exchange. D) None of these. Show Answer Correct Answer: A) National Stock Exchange. 17. Capital Market is a market for A) Long term assets. B) Short term assets. C) Medium term assets. D) None of the above. Show Answer Correct Answer: A) Long term assets. 18. 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 A) The assets at the bank increase by $ 800, 000. B) The liabilities of the bank increase by $ 1, 000, 000. C) The liabilities of the bank increase by $ 800, 000. D) Reserves increase by $ 160, 000. Show Answer Correct Answer: B) The liabilities of the bank increase by $ 1, 000, 000. 19. Which of the following share issue will bring fresh equity funds to the company. A) Right issue. B) Bonus share issue. C) Stock split. D) None of the above. Show Answer Correct Answer: A) Right issue. 20. Does a bear market mean the stock market is rising or going down? A) Rising. B) Going down. C) Staying the same. D) Cross dimensional static drift. Show Answer Correct Answer: B) Going down. 21. A DEFFERED INTEREST BOND PAYS ALL ITS COUPONS IN THE FIRST TWO YEARS OF ITS TENOR A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. Circuit breakers are triggered when index rises/fall by A) 10%, 12%, 15%. B) 10%, 15%, 20%. C) 5%, 10%, 15%. D) 10%, 12%, 20%. Show Answer Correct Answer: B) 10%, 15%, 20%. 23. In the parlance of economy/commerce, what is "gilt-edged" market? A) Gold and silver market. B) Industrial securities market. C) Market for safe (such as government) securities. D) Market for software technology/ service products. Show Answer Correct Answer: C) Market for safe (such as government) securities. 24. What is the amount of interest collected from a $ 5, 000 loan after three years with a simple interest rate of 6%? A) $ 5, 500. B) $ 900. C) $ 5, 900. D) $ 1, 104.08. Show Answer Correct Answer: B) $ 900. 25. By utilizing ..... , an investor can earn profits by buying bonds at a cut rate. A) Coupon rate. B) Discount from par. C) Daytrading. D) None of the above. Show Answer Correct Answer: B) Discount from par. ← PreviousNext →Related 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 8Class 12 Business Studies Chapter 10 Financial Markets Quiz 9Class 12 Business Studies Chapter 10 Financial Markets Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books