This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 24 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does IRA stand for? A) International Retirement Account. B) Individual Retirement Account. C) Individual Resource Academy. D) International Rifle Association. Show Answer Correct Answer: B) Individual Retirement Account. 2. What is the meaning of stock market indices? A) Stock market indices predict future stock prices. B) Stock market indices are used for company valuations. C) Stock market indices measure the performance of a group of stocks. D) Stock market indices represent individual stock prices. Show Answer Correct Answer: C) Stock market indices measure the performance of a group of stocks. 3. A commercial bill is used to ..... A) Finance the working capital requirements. B) Meet the short term debt. C) Meet the long term debt. D) Pay the interest. Show Answer Correct Answer: A) Finance the working capital requirements. 4. This equilibrium price demand and supply of money is called ..... A) Conversion rate. B) Exchange rate. C) Interest rate. D) None of the above. Show Answer Correct Answer: B) Exchange rate. 5. What is the main function of financial market? A) Price Determination. B) Channeling funds. C) Provides Liquidity to Financial Assets. D) None of the above. Show Answer Correct Answer: B) Channeling funds. 6. Once stocks are on the market, which best explains how their prices are set? A) Prices fluctuate on the basis of demand. B) Prices DO NOT fluctuate on the basis of demand. C) All the above. D) None of the above. Show Answer Correct Answer: A) Prices fluctuate on the basis of demand. 7. Certificate of deposits (CDs) A) Are issued by banks. B) Are attractive to small investors. C) Having varying rates of maturity. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. The FPC is primarily responsible for ..... A) Macro-prudential regulation. B) Micro-prudential regulation. C) All the above. D) None of the above. Show Answer Correct Answer: A) Macro-prudential regulation. 9. A market in which buyers and sellers negotiate and transact business directly, without any intermediary such as resellers. A) Primary Market. B) Foreign Exchange Market. C) Equity Market. D) Auction Market. Show Answer Correct Answer: A) Primary Market. 10. Which of the following factors influence the movements in the cash rate? A) Changes in bond prices. B) Changes in demand for credit. C) Changes in the supply and demand of overnight funds. D) Changes in asset prices. Show Answer Correct Answer: C) Changes in the supply and demand of overnight funds. 11. What is the present value of the following payment stream, discounted at 11% annually:$ 3, 000 at the end of year 1, $ 4, 000 at the end of year 3, and $ 6, 000 at the end of year 5? A) $ 9, 188.18. B) $ 9, 473.67. C) $ 9, 694.67. D) $ 9, 764.17. Show Answer Correct Answer: A) $ 9, 188.18. 12. Banks earn profits by selling ..... with attractive combinations of liquidity, risk, and return, and using the proceeds to buy ..... with a different set of characteristics. A) Loans; deposits. B) Securities; deposits. C) Liabilities; assets. D) Assets; liabilities. Show Answer Correct Answer: C) Liabilities; assets. 13. Which of the following is the function of Financial Market? A) Mobilization of savings. B) Price fixation. C) Provide liquidity to financial assets. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. A 401k plan is a(n) A) Emergency fund. B) Retirement plan. C) Checking account. D) Loan. Show Answer Correct Answer: B) Retirement plan. 15. Each purchase occurring in the secondary markets increases the total stock of financial assets that exist in the economy. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 16. It is an instrument of short-term borrowing by the Government of India maturing in less than one year. A) Commercial bill. B) Treasury bill. C) Call money. D) None of the above. Show Answer Correct Answer: B) Treasury bill. 17. A mean market when prices move down for several months or years in a row is known as a A) Bull market. B) Bear market. C) All the above. D) None of the above. Show Answer Correct Answer: B) Bear market. 18. NBFC does not Include A) Agriculture activity. B) Sale of Immovable property. C) Industrial Activity. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. People who hold shares are known as ..... A) Stockbrokers. B) Bankers. C) Shareholders. D) General public. Show Answer Correct Answer: C) Shareholders. 20. What is an example of a speculative transaction involving commodities? A) Investing in real estate. B) Buying stocks for long-term growth. C) Purchasing gold futures contracts. D) Holding bonds until maturity. Show Answer Correct Answer: C) Purchasing gold futures contracts. 21. Hawks favour A) Tight monetary policy. B) Loose monetary policy. C) All the above. D) None of the above. Show Answer Correct Answer: A) Tight monetary policy. 22. True or false?The primary (new issue) market is where newly issued securities are sold by companies and governments. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 23. A negotiable CD A) Is a registered instrument. B) Is a bank-issued time deposit. C) Is a bank-issued transactions deposit. D) Pays discount interest. Show Answer Correct Answer: B) Is a bank-issued time deposit. 24. These shares represent the true owners of the corporation. A) Ordinary Shares. B) Preference Shares. C) Treasury Shares. D) Ordinary Preference Shares. Show Answer Correct Answer: A) Ordinary Shares. 25. How much must be invested today for $ 400 to be received 3 years from now, assuming an interest rate of 8%, quarterly compounding? A) $ 228.00. B) $ 369.54. C) $ 317.53. D) $ 315.40. Show Answer Correct Answer: D) $ 315.40. ← 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