This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 13 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If M=100, V=5, and T=250, what is P according to the quantity theory of money? A) 1. B) 2. C) 5. D) 10. Show Answer Correct Answer: B) 2. 2. Money market mutual funds can invest in ..... A) Treasury bills. B) Certificate of deposits. C) Commercial paper. D) All of the above. E) Not Attempted. Show Answer Correct Answer: D) All of the above. 3. What type of information can be displayed in the Market Watch Window? A) Stock prices and trading volumes for the selected securities. B) Detailed company profiles. C) General market news. D) Historical trading data. Show Answer Correct Answer: A) Stock prices and trading volumes for the selected securities. 4. What is the main difference between Treasury bonds, Treasury notes, and Treasury bills? A) The amount of time for maturity. B) The interest rate. C) The minimum purchase requirement. D) The method of sale. Show Answer Correct Answer: A) The amount of time for maturity. 5. The use of income today that allows for greater production in the future. A) Investment. B) Savings. C) Secondary market. D) Risk. Show Answer Correct Answer: B) Savings. 6. What two investments are at opposite ends of the risk spectrum? A) Treasury notes and futures. B) Savings bonds and Treasury notes. C) Equities and futures. D) CDs and EE savings bonds. Show Answer Correct Answer: A) Treasury notes and futures. 7. When stock prices increase steadily as investors anticipate their ability to earn a profit A) Bull Market. B) Bear Market. C) All the above. D) None of the above. Show Answer Correct Answer: A) Bull Market. 8. Money market Institutions are ..... A) Investment Houses. B) Mortgage Banks. C) Reserve Bank of India. D) Commercial Banks and Discount Houses. Show Answer Correct Answer: D) Commercial Banks and Discount Houses. 9. What is a common strategy used by options traders? A) Avoiding market trends. B) Buying call options. C) Holding assets for years. D) Buying stocks for long-term growth. Show Answer Correct Answer: B) Buying call options. 10. Which of the following is a cash asset? A) Deposits created out of loans. B) Share. C) Bond. D) Post office certificate. Show Answer Correct Answer: A) Deposits created out of loans. 11. Derivatives increase leverage A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 12. ) If you expect that the price of a stock will decline, which of the following are you most likely do?. A) Buy a put option on the stock. B) Buy a call option on the stock. C) Write a put option on the stock. D) Buy the stock on margin. Show Answer Correct Answer: A) Buy a put option on the stock. 13. Which of the following is a liability on a retail bank's balance sheet? A) Deposits. B) Cash. C) Bills. D) Investments. Show Answer Correct Answer: A) Deposits. 14. Liquidity in financial terms is A) The ease with which an asset can be sold at a published market price. B) To lower the rate of return for an asset. C) The best measure of risk of a financial asset. D) A feature of money only. Show Answer Correct Answer: A) The ease with which an asset can be sold at a published market price. 15. Since 1998 the DMO has issued gilts on behalf of the Treasury and in 2000 it took over responsibility for issuing Treasury bills (T-bills) and thus managing the government's short-term cash needs.Who is the DMO? A) Department of Management and OMOs. B) Debt Management Office. C) Debt and Money Supply Office. D) Department of Money and Overheads. Show Answer Correct Answer: B) Debt Management Office. 16. Funds that collect and invest income until payments are made to eligible (retired) people are known as A) Mutual funds. B) Pension funds. C) Bear markets. D) Bull markets. Show Answer Correct Answer: B) Pension funds. 17. The government agency responsible for regulating the stock market? A) Federal Reserve Board. B) Federal Trade Commission. C) Interstate Commerce Commission. D) Securities and Exchange Commission. Show Answer Correct Answer: D) Securities and Exchange Commission. 18. The Second-Tier Securities Market aims to encourage ..... to access stock market resources. A) Large multinational corporations. B) Small and medium-scale enterprises. C) Government agencies only. D) Foreign investors exclusively. Show Answer Correct Answer: B) Small and medium-scale enterprises. 19. Which best describes an investor's primary goal? A) To earn a profit. B) To lose a profit. C) All the above. D) None of the above. Show Answer Correct Answer: A) To earn a profit. 20. Which of these is NOT a role of RBI? A) Controlling inflation. B) Managing forex reserves. C) Regulating stock markets. D) Regulating stock markets. Show Answer Correct Answer: C) Regulating stock markets. 21. Dividends are paid A) From profits during the year. B) Past 3 years profits. C) From general reserve. D) None of the above. Show Answer Correct Answer: A) From profits during the year. 22. How do households help fuel economic growth by saving money? A) Providing $ to banks to lend to businesses. B) Spending their savings. C) Using their savings for an emergency. D) Giving their savings to friends and family. Show Answer Correct Answer: A) Providing $ to banks to lend to businesses. 23. A rise in "Sensex" means A) A rise in prices of shares of all companies registered with the Bombay Stock Exchange. B) An overall rise in prices of shares of all companies registered with the National Stock Exchange. C) An overall rise in prices of shares of group of companies registered with the Bombay Stock Exchange. D) A rise in prices of shares of all companies belonging to a group of companies registered with the Bombay Stock Exchange. Show Answer Correct Answer: C) An overall rise in prices of shares of group of companies registered with the Bombay Stock Exchange. 24. It allows the shareholders to convert their shares into a stated number of ordinary shares on a certain date. A) Convertible. B) Cumulative. C) Callable. D) Puttable. Show Answer Correct Answer: A) Convertible. 25. Primary markets are used to: A) Trade existing shares. B) Issue securities for the first time. C) Hedge currency risks. D) Conduct inter-bank lending. Show Answer Correct Answer: B) Issue securities for the first time. ← 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books