This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 14 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which category asset class holder have voting rights in a company A) Preference Share Holder. B) Equity Share Holder. C) Debt instrument holder. D) A & B. Show Answer Correct Answer: B) Equity Share Holder. 2. Banks hold capital because A) They are required to by regulatory authorities. B) Higher capital increases the returns to the owners. C) It increases the likelihood of bankruptcy. D) Higher capital increases the return on equity. Show Answer Correct Answer: A) They are required to by regulatory authorities. 3. When a stock pays an income that is based off the company's profits this is called A) A derivative. B) An option. C) A dividend. D) A discount from par. Show Answer Correct Answer: C) A dividend. 4. Which of the following is a type of security traded in money markets? A) Treasury bills. B) Corporate bonds. C) Stocks. D) Real estate. Show Answer Correct Answer: A) Treasury bills. 5. Which of the following can not be described as involving disintermediation? A) Nitin parks his funds in a FD with a bank. B) A corporation takes out loans from a bank. C) A corporation buys a short-term security issued by another corporation. D) Both A and B of the above. Show Answer Correct Answer: D) Both A and B of the above. 6. The most commonly used multiple to value banks: A) Price to Book. B) Price to Earnings. C) EV to EBITDA. D) Price to Sales. Show Answer Correct Answer: A) Price to Book. 7. A strategy of holding different kinds of investments to minimize risk A) Portfolio diversification. B) Primary market. C) Risk. D) Savings. E) Secondary market. Show Answer Correct Answer: A) Portfolio diversification. 8. Marine insurance provides protection mainly against: A) Illness and hospitalization. B) Loss or damage during transit over sea. C) Loss of income due to unemployment. D) Life risks due to accidents. Show Answer Correct Answer: B) Loss or damage during transit over sea. 9. What are stock dividends? A) Physical certificates representing ownership in a company. B) Additional shares of a company's stock given to shareholders at no cost. C) A type of bond issued by a company to raise capital. D) A tax imposed on stock transactions. Show Answer Correct Answer: B) Additional shares of a company's stock given to shareholders at no cost. 10. Buying stock in order to sell it quickly in an effort to have your money grow faster than the general level of stock prices is known as A) Early phase of development. B) Diversification. C) Long-term investing. D) Short-term investing. Show Answer Correct Answer: D) Short-term investing. 11. Apa yang dimaksud dengan bond indenture dalam obligasi korporasi? A) Surat perjanjian antara pemegang saham. B) Kontrak yang menyatakan hak dan kewajiban pemberi pinjaman dan peminjam. C) Sertifikat kepemilikan perusahaan. D) Dokumen perpajakan tahunan. Show Answer Correct Answer: B) Kontrak yang menyatakan hak dan kewajiban pemberi pinjaman dan peminjam. 12. When one party to a transaction has incentives to engage in activities detrimental to the other party, there exists a problem of A) Pre-contractual opportunism. B) Split incentives. C) Moral hazard. D) None of the above. Show Answer Correct Answer: C) Moral hazard. 13. Which of the following derivatives is classified as a contingent claim? A) Futures contracts. B) Interest rate swaps. C) Credit default swaps. D) None of the above. Show Answer Correct Answer: C) Credit default swaps. 14. The Securities and Exchange Commission is responsible for ..... A) Bank and Credit Union oversight. B) The free market economy and the money supply. C) National Defense and the budget. D) Regulating security markets and protecting investors. Show Answer Correct Answer: D) Regulating security markets and protecting investors. 15. Which financial instrument represents ownership in a corporation? A) Certificate of deposit. B) Commodities. C) Treasury bond. D) Stocks. Show Answer Correct Answer: D) Stocks. 16. Which component of NEAT allows traders to view the latest market updates and corporate actions? A) Inquiry Window. B) Snap Quote. C) Message Window. D) Ticker Window. Show Answer Correct Answer: D) Ticker Window. 17. What is the significance of stocks in financial markets? A) Stocks guarantee a fixed return on investment. B) Stocks are significant as they provide capital for companies, investment opportunities for individuals, and contribute to market liquidity and price discovery. C) Stocks are only for large corporations. D) Stocks are primarily used for personal loans. Show Answer Correct Answer: B) Stocks are significant as they provide capital for companies, investment opportunities for individuals, and contribute to market liquidity and price discovery. 18. What is it called when the stock market rises for a period of time? A) Bull market. B) Bear market. C) Stock market. D) Growth market. Show Answer Correct Answer: A) Bull market. 19. Government Securities are issued by agencies such as ..... A) Central Government. B) State Government. C) Semi Government Authorities. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. In a competitive resource market, the firm employing a resource such as labor is A) Price maker. B) Cost maker. C) Wage taker. D) Revenue taker. Show Answer Correct Answer: C) Wage taker. 21. The demand for a resource is derived from the A) Demand for the products it helps produce. B) Price of the resource. C) Supply of the resource. D) Income of the firm selling the resource. Show Answer Correct Answer: A) Demand for the products it helps produce. 22. Which of these is NOT part of the Bank of England? A) FCA. B) PRA. C) FPC. D) None of the above. Show Answer Correct Answer: A) FCA. 23. John's review on JKH share in the Colombo stock exchange is LKR 182. Its EPS is LKR 16.25. The last 10 years average PER comes to 15 times. He decides to purchase the particular share due to its low PER. His investment strategy can be recognized as A) Contrarian investing. B) Value investing. C) Momentum investing. D) Growth investing. Show Answer Correct Answer: B) Value investing. 24. What will be the future value of Rs.12, 000 invested today with an annual rate of return of 20% per annum after one year? A) Rs. 14, 000. B) Rs, 14, 250. C) Rs. 14, 400. D) Rs. 14, 500. E) Not Attempted. Show Answer Correct Answer: C) Rs. 14, 400. 25. A market where fixed income instruments, such as bonds, certificate of deposits, debentures and government securities are traded. A) Equity Market. B) Debt Market. C) Both of the above. D) None of the above. Show Answer Correct Answer: B) Debt Market. ← 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