This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 19 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A company that accepts deposits, makes loans, pays interest to depositors, and pays dividends to its owners. A) Pension fund. B) Savings & Loan Association. C) Commercial banks. D) Savings institution. Show Answer Correct Answer: C) Commercial banks. 2. What is a real risk-free rate? A) The rate a risk-free security would pay if no inflation were expected. B) The rate a risky security would pay if inflation were expected. C) The rate a risk-free security would pay if inflation were high. D) The rate a risky security would pay if no inflation were expected. Show Answer Correct Answer: A) The rate a risk-free security would pay if no inflation were expected. 3. Which is the best synonym for the bonds that are used to raise corporate capital? A) Payments. B) Loans. C) Taxes. D) Stocks. Show Answer Correct Answer: B) Loans. 4. Apa yang dimaksud dengan "share of stock" dalam sebuah perusahaan? A) Surat utang perusahaan. B) Representasi kepemilikan dalam perusahaan. C) Pinjaman dari bank. D) Hak untuk mengelola perusahaan. Show Answer Correct Answer: B) Representasi kepemilikan dalam perusahaan. 5. The value of a currency in terms of another is not known directly is called as ..... A) Cross rate. B) Forward rate. C) Currency swape. D) None of the above. Show Answer Correct Answer: A) Cross rate. 6. Why is liquidity important for investors? A) It reduces taxes. B) It ensures easy entry & exit. C) It increases inflation. D) It sets accounting standards. Show Answer Correct Answer: B) It ensures easy entry & exit. 7. When a $ 10 check written on the First National Bank of Chicago is deposited in an account at Citibank, then A) The liabilities of the First National Bank increase by $ 10. B) The reserves of the First National Bank increase by $ 10. C) The liabilities of Citibank increase by $ 10. D) The assets of Citibank fall by $ 10. Show Answer Correct Answer: C) The liabilities of Citibank increase by $ 10. 8. Protecting the public against ..... is a function of the stock exchange. A) Inflation. B) Deflation. C) Fraud. D) High taxation. Show Answer Correct Answer: C) Fraud. 9. Which bubble is a prime example of the effects of herd instinct? A) The cryptocurrency boom of the 2010s. B) The gold rush of the 19th century. C) The real estate bubble of the early 2000s. D) The dotcom bubble of the late 1990s and early 2000s. Show Answer Correct Answer: D) The dotcom bubble of the late 1990s and early 2000s. 10. Which component allows the user to quickly access various functions using functional buttons? A) Snap Quote. B) Tool Bar. C) Market Watch Window. D) Inquiry Window. Show Answer Correct Answer: B) Tool Bar. 11. What is investment analysis and its importance? A) Investment analysis is a process that guarantees profits in all market conditions. B) Investment analysis is crucial for making informed investment decisions, optimizing portfolio performance, and minimizing financial risks. C) Investment analysis is only for large corporations and not individuals. D) Investment analysis focuses solely on historical data without future projections. Show Answer Correct Answer: B) Investment analysis is crucial for making informed investment decisions, optimizing portfolio performance, and minimizing financial risks. 12. Bank capital has both benefits and costs for the bank owners. Higher bank capital ..... the likelihood of bankruptcy, but higher bank capital ..... the return on equity for a given return on assets. A) Reduces; reduces. B) Increases; increases. C) Reduces; increases. D) Increases; reduces. Show Answer Correct Answer: A) Reduces; reduces. 13. Real wages would decline if the A) Prices of goods and services rose more rapidly than nominal-wage rates. B) Prices of goods and services rose less rapidly than nominal-wage rates. C) Prices of goods and services and wages rates both increase. D) Prices of goods and services and wage rates both decrease. Show Answer Correct Answer: A) Prices of goods and services rose more rapidly than nominal-wage rates. 14. The money market where securities are issued by governments to obtain funds for the short term is classified as? A) Money market instruments. B) Capital market instruments. C) Counter instruments. D) Counter instruments. Show Answer Correct Answer: A) Money market instruments. 15. Which of the following is not capital market instruments? A) Commercial paper. B) Stocks. C) Corporate bonds. D) Mortgage. Show Answer Correct Answer: A) Commercial paper. 16. What does equity represent in a company? A) Ownership in the company. B) A type of bond. C) A government grant. D) A loan to the company. Show Answer Correct Answer: A) Ownership in the company. 17. Which of the following is TRUE about Primary Markets? A) Primary Market is the place where public can buy and sell securities from one another. B) Primary Markets refer to the mobilization of funds from the public by corporates through the issue of shares / debentures. C) Primary Markets are places where only short term instruments are traded. D) Primary Markets are markets where commodities are sold. E) Not Attempted. Show Answer Correct Answer: B) Primary Markets refer to the mobilization of funds from the public by corporates through the issue of shares / debentures. 18. A company operates in a sector characterized with high operating leverage. Which statement describes the sector most appropriately: A) Revenue will increase much faster than expenses. B) Profit will increase much faster than expenses. C) A large part of increase in revenue will translate into increase in profit. D) None of the above. Show Answer Correct Answer: C) A large part of increase in revenue will translate into increase in profit. 19. How can people avoid herd instinct according to the text? A) By doing their own research and making their own decisions. B) By waiting for others to make the first move. C) By following the most popular trends on social media. D) By investing only in government bonds. Show Answer Correct Answer: A) By doing their own research and making their own decisions. 20. Which of these windows is used to track the real-time exe A) Ticker Window. B) Snap Quote. C) Message Window. D) Order/Trade Window. Show Answer Correct Answer: A) Ticker Window. 21. Stock price where it will be sold if all investors had information. A) Option price. B) Equilibrium price. C) Market price. D) Intrinsic price. Show Answer Correct Answer: D) Intrinsic price. 22. Capital market consist of A) Industrial securities market. B) Government securities market. C) Long term loan market. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. Perbedaan durasi maturitas dari bonds dan notes adalah bahwa notes memiliki maturitas original selama ..... A) Kurang dari tiga puluh tahun. B) Lebih dari satu tahun tetapi kurang dari sepuluh tahun. C) Kurang dari satu tahun. D) Sepuluh sampai tiga puluh tahun. Show Answer Correct Answer: B) Lebih dari satu tahun tetapi kurang dari sepuluh tahun. 24. A corporation seeking to sell new equity securities to the public for the first time in order to raise cash for capital investment would most likely A) Place an ad in the Wall Street Journal soliciting retail suppliers of funds. B) Issue bonds with the assistance of a dealer. C) Conduct a private placement to a large number of potential buyers. D) Conduct an IPO with the assistance of an investment banker. Show Answer Correct Answer: D) Conduct an IPO with the assistance of an investment banker. 25. Treasury Bonds A) Pay dividends twice a year. B) Are good short-term investments. C) C.are tax-exempt bonds that fund. D) Are certificates issued by the U.S. Treasury municipal projects. Show Answer Correct Answer: B) Are good short-term investments. ← 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