This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 16 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is behavioral finance? A) A method for predicting stock prices based on historical data. B) A strategy for maximizing profits through high-risk investments. C) A theory that suggests markets are always efficient and rational. D) Behavioral finance is a field that combines psychology and finance to understand how emotional and cognitive factors influence investors' decisions. Show Answer Correct Answer: D) Behavioral finance is a field that combines psychology and finance to understand how emotional and cognitive factors influence investors' decisions. 2. What is one of the key benefits of financial intermediation? A) Increased regulatory oversight. B) Higher interest rates for savers. C) Efficient allocation of capital. D) Reduced consumer protection. Show Answer Correct Answer: C) Efficient allocation of capital. 3. What is a money market mutual fund? A) Any single financial asset with a maturity of one year or less. B) Any investment fund made up of a variety of financial assets. C) A financial asset that allows investors to own a variety of short-term financial asset. D) A form of time deposit with a maturity date ranging from 6 months to 5 years. Show Answer Correct Answer: C) A financial asset that allows investors to own a variety of short-term financial asset. 4. Melindungi mata uang dari spekulan adalah tujuan dari ..... A) Pasar modal. B) Pembatasan mata uang. C) Keuntungan investor. D) Pasar valuta asing. Show Answer Correct Answer: B) Pembatasan mata uang. 5. Neither income gap analysis nor duration gap analysis are useful tools for telling a financial institution manager the institution's degree of exposure to interest-rate risk. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 6. Which of the Following correctly describes the Securities and Exchange Commission? A) A governmental agency hat regulates federal spending. B) A private commission that exchanges money. C) A federal agency that maintains fair and efficient markets. D) An Interest group that lobbies for regulations in economics. Show Answer Correct Answer: C) A federal agency that maintains fair and efficient markets. 7. A ..... is defined as an investment report to potential investors. A) Portfolio. B) Prospectus. C) Pension fund. D) None of the above. Show Answer Correct Answer: B) Prospectus. 8. In recent years the interest paid on checkable and nontransaction deposits has accounted for around ..... of total bank operating expenses, while the costs involved in servicing accounts have been approximately ..... of operating expenses. A) 45 percent; 55 percent. B) 55 percent; 4 percent. C) 5 percent; 85 percent. D) 50 percent; 30 percent. Show Answer Correct Answer: C) 5 percent; 85 percent. 9. Which of the following can be described as involving direct finance? A) A corporation's stock is traded in an OTC market. B) People buy shares in a mutual fund. C) A pension fund manager buy commercial paper in the secondary market. D) A pension fund manager buy commercial paper from the issuing corporation. Show Answer Correct Answer: D) A pension fund manager buy commercial paper from the issuing corporation. 10. How do regulatory bodies affect financial markets? A) Regulatory bodies increase market volatility and uncertainty. B) Regulatory bodies ensure transparency, fairness, and stability in financial markets. C) Regulatory bodies eliminate all risks in financial markets. D) Regulatory bodies focus solely on maximizing profits for investors. Show Answer Correct Answer: B) Regulatory bodies ensure transparency, fairness, and stability in financial markets. 11. State Governments issue only bonds or dated securities these are called A) The State Development Loans (SDLs). B) The state government dated securities. C) The state government funding loans. D) The state government borrowings. Show Answer Correct Answer: A) The State Development Loans (SDLs). 12. Which of the following role is NOT belonged to financial market? A) Distribute at a large scale to the growth of national GDP. B) Tool for macroeconomic stabilization and risk reduction. C) Improve the efficiency of using financial resources. D) Risk sharing and dispersion. Show Answer Correct Answer: A) Distribute at a large scale to the growth of national GDP. 13. If you can make abnormal profits (after costs and risks) by investing in stocks using fundamental analysis, it means that the market is ..... A) Semi-strong form inefficient. B) Weak form inefficient. C) Semi-strong form efficient. D) Weak form efficient. Show Answer Correct Answer: A) Semi-strong form inefficient. 14. Which of these is an organized market? A) Street vendors. B) Stock exchange. C) Informal lending. D) Friends lending money. Show Answer Correct Answer: B) Stock exchange. 15. What is a key characteristic of speculative transactions? A) Focus on long-term investments. B) Reliance on market fluctuations. C) Guaranteed profits. D) Avoidance of risk. Show Answer Correct Answer: B) Reliance on market fluctuations. 16. Some of the key elements in the financial markets are A) Lenders and borrowers. B) Financial Intermediaries. C) Financial instruments. D) All of the mentioned options. Show Answer Correct Answer: D) All of the mentioned options. 17. Below are all types of return except: A) Actual return. B) Expected return. C) Possible return. D) Required return. Show Answer Correct Answer: C) Possible return. 18. Shares are the share in a company's profit? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 19. This is the approved capital which an organization gives to the investors. A) Authorized Share Capital. B) Issued Share Capital. C) Subscribed Share Capital. D) Paid Up Capital. Show Answer Correct Answer: B) Issued Share Capital. 20. What type of market is the stock exchange? A) Money Market. B) Capital Market. C) Bond Market. D) Derivatives Market. Show Answer Correct Answer: B) Capital Market. 21. If the RBA bought CGS in the cash market what effect would this have on the supply of cash and the cash rate? A) A decrease in the supply of cash and a rise in the cash rate. B) An increase in the supply of cash and a fall in the cash rate. C) An increase in the supply of cash and a rise in the cash rate. D) A decrease in the supply of cash and a fall in the cash rate. Show Answer Correct Answer: B) An increase in the supply of cash and a fall in the cash rate. 22. As a result of a bonus share issue of a company, A) Number of shares will not increase. B) New equity capital will be mobilized. C) Reserves will be capitalized. D) Share price will increase in the market. Show Answer Correct Answer: C) Reserves will be capitalized. 23. What does "FINRA" stand for? A) Federal Insurance Regulatory Advisory. B) Financial Industry Regulatory Authority. C) Federal Institute for Religious Authority. D) None of the Answers are Correct. Show Answer Correct Answer: B) Financial Industry Regulatory Authority. 24. Which of the following would NOT directly cause the price of a stock to change? A) A shiny new corporate office building in sunny Florida. B) Supply and Demand. C) Company earnings. D) How investors feel about the company. Show Answer Correct Answer: A) A shiny new corporate office building in sunny Florida. 25. Which of the following is a function of the financial system? A) Mobilization of savings. B) Allocation of resources. C) Facilitating payments. D) All of the above. Show Answer Correct Answer: D) All of the above. ← 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