This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 15 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A major player in the money market is the ..... A) Commercial Bank. B) Reserve Bank of India. C) State Bank of India. D) Central Bank. Show Answer Correct Answer: A) Commercial Bank. 2. A market for existing or second hand securities is A) Secondary Market. B) Primary Market. C) Both the above. D) None. Show Answer Correct Answer: A) Secondary Market. 3. "Bear Market" A) A period of time during which stock prices are falling. B) A period of time during which stock prices are rising. C) The network of structures that allows for the transfer of money between savers and investors. D) Making high-risk investments with borrowed money. Show Answer Correct Answer: A) A period of time during which stock prices are falling. 4. A market that gives companies a way to raise needed capital and gives investors an opportunity for gain by allowing those companies' stock shares to be traded A) Equity Market. B) Debt Market. C) Auction Market. D) Over-the-counter Market. Show Answer Correct Answer: A) Equity Market. 5. Which one is a characteristic of secondary markets? A) Shares are issued for the first time. B) Trading among investors. C) Only private placements allowed. D) Only bonds are traded. Show Answer Correct Answer: B) Trading among investors. 6. What is an order telling a broker to buy or sell a specific security at the best currently available price? A) Market order. B) Limit order. C) None of the answers. D) Both market and limit order. Show Answer Correct Answer: A) Market order. 7. Which of the following is NOT a type of financial security? A) Stocks. B) Bonds. C) Real estate. D) Futures contracts. Show Answer Correct Answer: C) Real estate. 8. Jaringan Pasar OTC Terbesar di Amerika adalah ..... A) NASDAQ. B) NYSE. C) CBOE. D) OTC Markets Group. Show Answer Correct Answer: A) NASDAQ. 9. Which of the following is NOT a symbol used in stock summaries? A) 52 Weeks. B) % CHG. C) 100s. D) DIV. Show Answer Correct Answer: B) % CHG. 10. What is the difference between a bull market and a bear market? A) A bull market indicates rising prices, while a bear market indicates falling prices. B) A bull market indicates falling prices, while a bear market indicates rising prices. C) A bull market is characterized by high volatility, while a bear market is stable. D) Both bull and bear markets indicate stable prices. Show Answer Correct Answer: A) A bull market indicates rising prices, while a bear market indicates falling prices. 11. How does monetary policy impact consumer spending? A) By controlling inflation directly. B) By increasing taxes. C) By regulating stock prices. D) By adjusting interest rates. Show Answer Correct Answer: D) By adjusting interest rates. 12. What did the Banking Act of 1933 (Glass-Steagall Act) establish? A) It established the SEC to regulate stock markets. B) It created the Federal Reserve System. C) It abolished all bank regulations. D) It established the FDIC, which ensures depositors when a bank fails. Show Answer Correct Answer: D) It established the FDIC, which ensures depositors when a bank fails. 13. In financial markets, the period of maturity less than one year of financial instrument is classified as ..... A) Short-term. B) Long-term. C) Intermediate term. D) Capital term. Show Answer Correct Answer: A) Short-term. 14. People who own stocks are guaranteed a return on the money they have invested in stocks. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 15. A country is said to have "twin deficit", if it has: A) Current account deficit and shortage of FX reserves. B) Current account deficit and budget expenditure is more than budget revenue. C) Current account deficit and deficit in the social insurance system. D) Current account deficit and deficit of electricity. Show Answer Correct Answer: B) Current account deficit and budget expenditure is more than budget revenue. 16. The company made a bonus issue of 1 for 4. You held a total of 5, 000 shares of the company before the bonus issue was made. After the bonus issue, what the total number of shares owned by you. A) 6, 000 shares. B) 6, 250 shares. C) 1, 250 shares. D) 1, 000 shares. Show Answer Correct Answer: B) 6, 250 shares. 17. Which organizations was not created under Bretton Woods era? A) The International Bank for Reconstruction and Development (World Bank). B) The International Monetary Fund (IMF). C) United Nation (UN). D) None of the above. Show Answer Correct Answer: C) United Nation (UN). 18. Venture capitalists typically seek a return on investment within a few months A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 19. The capital market is divided into: A) Domestic and international markets. B) Primary market and secondary market. C) Debt market and equity market. D) Spot market and futures market. Show Answer Correct Answer: B) Primary market and secondary market. 20. In the absence of regulation, banks would probably hold A) Too much capital, reducing the efficiency of the payments system. B) Too much capital, reducing the profitability of banks. C) Too little capital. D) Too much capital, making it more difficult to obtain loans. Show Answer Correct Answer: C) Too little capital. 21. Which of these is a feature of Foreign Direct Investment (FDI)? A) High liquidity. B) Direct control over business operations. C) Short-term capital flow. D) Minimal regulatory oversight. Show Answer Correct Answer: B) Direct control over business operations. 22. Banks provide which of the following A) Debit cards. B) Loans. C) Check writing services. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. How are savings and investment related? A) Savings and investment are unrelated; savings is for emergencies, while investment is for profit. B) Savings provide the funds that are used for investment. C) Investment is a form of savings that earns interest. D) Savings and investment are the same thing. Show Answer Correct Answer: B) Savings provide the funds that are used for investment. 24. Which type of money must be legally accepted for payment of debts? A) Commodity money. B) Legal tender. C) Token money. D) Plastic money. Show Answer Correct Answer: B) Legal tender. 25. Keuntungan utama menggunakan leasing bagi pelaku usaha adalah A) Barang modal langsung menjadi milik pelaku usaha tanpa pembayaran. B) Tidak perlu mengeluarkan modal besar di awal untuk membeli barang. C) Angsuran yang dilakukan tidak memerlukan perjanjian hukum. D) Tidak adanya risiko kehilangan barang. Show Answer Correct Answer: B) Tidak perlu mengeluarkan modal besar di awal untuk membeli barang. ← 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