This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 21 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What can herd instinct at scale create in financial markets? A) Asset bubbles or market crashes. B) Higher interest rates on bonds. C) Decreased volatility in stock prices. D) Stable and predictable market conditions. Show Answer Correct Answer: A) Asset bubbles or market crashes. 2. Which instrument among these have historically shown to give the highest returns when invested over long periods? A) Debentures. B) Bank Deposit. C) Equity. D) Fixed Deposit. E) Not Attempted. Show Answer Correct Answer: C) Equity. 3. The money market provides circulating capital for: A) Government long-term projects. B) Commerce and industry. C) Individual housing loans. D) International development aid. Show Answer Correct Answer: B) Commerce and industry. 4. The main dealer at the stock exchange who does not deal directly with the public is the: A) Stock Broker. B) Jobber. C) Merchant Bank. D) Financial Advisor. Show Answer Correct Answer: B) Jobber. 5. Which of the following cannot accept Demand Deposits? A) Commercial Banks. B) Foreign Banks. C) Local area Banks. D) NBFC. Show Answer Correct Answer: D) NBFC. 6. ..... a market in which financial capital is loaned and/or borrowed for at least one year A) Primary market. B) Secondary market. C) Financial system. D) Capital market. Show Answer Correct Answer: D) Capital market. 7. How does the stock market work? A) The stock market is a government-run system for distributing food supplies. B) The stock market is a venue for trading physical goods like cars and electronics. C) The stock market is a place where people buy and sell real estate properties. D) The stock market is a platform for trading shares of publicly listed companies, where prices are determined by supply and demand. Show Answer Correct Answer: D) The stock market is a platform for trading shares of publicly listed companies, where prices are determined by supply and demand. 8. What is the name of the amount that the issuer of a bond promises to pay the buyer at maturity? A) Bond value. B) Coupon rate. C) Par value. D) Yield. Show Answer Correct Answer: C) Par value. 9. A bank failure occurs whenever A) A bank cannot satisfy its obligations to pay its depositors and other creditors. B) A bank suffers a large deposit outflow. C) A bank has to call in a large volume of loans. D) A bank refuses to make new loans. Show Answer Correct Answer: A) A bank cannot satisfy its obligations to pay its depositors and other creditors. 10. In which of the following structures are the most trade made? A) OTC market. B) NYSE. C) Nasdaq. D) Chicago Board of Trade. Show Answer Correct Answer: B) NYSE. 11. The most common type of bank accounts A) CD's and DDA's. B) Mutual Funds. C) Money market accounts. D) Savings & Checking accounts. Show Answer Correct Answer: D) Savings & Checking accounts. 12. Which of the following is not a Leverage/Capital structure ratios? A) Interest Coverage. B) Current Ratio. C) Debt-Asset. D) Debt-Equity. E) Not Attempted. Show Answer Correct Answer: B) Current Ratio. 13. It is the total market value of all outstanding shares of company. A) Capital Market. B) Market Capitalization. C) Mega-cap. D) Large-cap. Show Answer Correct Answer: B) Market Capitalization. 14. When Jane Brown writes a $ 100 check to her nephew and he cashes the check, Ms. Brown's bank ..... assets of $ 100 and ..... liabilities of $ 100. A) Gains; gains. B) Gains; loses. C) Loses; gains. D) Loses; loses. Show Answer Correct Answer: D) Loses; loses. 15. For a Bond with Call Option, effective maturity could be less than Original maturity A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 16. Which of the following will increase transaction demand for money? A) Lower income. B) Higher income. C) Lower money supply. D) Higher speculative demand. Show Answer Correct Answer: B) Higher income. 17. The market can be halted once both the Sensex and Nifty hit the Circuit Breaker together A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 18. Insurance coverage is related to A) Principle of productive purpose. B) Principle of protection. C) Principle of proper utilization. D) Principle of phased disbursement. Show Answer Correct Answer: B) Principle of protection. 19. What is the present value of investment today in order to generate an annuity of $ 1, 000 per year in 4 years, with the first payment due today, at an interest rate of 12%? A) $ 3, 037.35. B) $ 3, 401.83. C) $ 3, 401.83. D) $ 4, 604.78. Show Answer Correct Answer: B) $ 3, 401.83. 20. Bitcoin may not be considered good money because it is not A) Commonly accepted. B) Portable. C) Limited in supply. D) Difficult to forge. Show Answer Correct Answer: A) Commonly accepted. 21. Financial market ..... financial assets. A) Creates. B) Exchange. C) Creates and Exchange. D) None of the above. Show Answer Correct Answer: C) Creates and Exchange. 22. What is the role of banks in the economy? A) Banks only serve wealthy individuals and large corporations. B) Banks facilitate financial transactions, provide loans, accept deposits, and contribute to economic stability. C) Banks are responsible for setting government policies and regulations. D) Banks primarily focus on real estate investments and property management. Show Answer Correct Answer: B) Banks facilitate financial transactions, provide loans, accept deposits, and contribute to economic stability. 23. The secondary market is dominated by: A) Merchant banks. B) The stock exchange. C) Acceptance houses. D) Finance companies. Show Answer Correct Answer: B) The stock exchange. 24. Which can be traded in a commodities market? A) Oil. B) Cars. C) All the above. D) None of the above. Show Answer Correct Answer: A) Oil. 25. Liquidity can best be described as ..... A) Long term assets. B) The speed and ease with which an asset can be converted to cash without losing value. C) Any asset with value. D) Cash, bank deposits and shares. Show Answer Correct Answer: B) The speed and ease with which an asset can be converted to cash without losing value. ← 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