This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 26 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Benchmark index of India A) S&P 500. B) Nikkei 225. C) Dow Jones. D) Nifty. Show Answer Correct Answer: D) Nifty. 2. A Treasury Bill is basically: A) An instrument to borrow short-term funds. B) An instrument to borrow long-term funds. C) An instrument of capital market. D) None of the above. Show Answer Correct Answer: A) An instrument to borrow short-term funds. 3. What has contributed to the growth of financial services in India? A) Economic liberalization and technological advancements. B) Increased government regulation and market restrictions. C) Rise of traditional banking and cash transactions. D) Decline in consumer demand and investment. Show Answer Correct Answer: A) Economic liberalization and technological advancements. 4. Sensex consists of ..... companies A) 10. B) 50. C) 30. D) 100. Show Answer Correct Answer: C) 30. 5. The Jamaica meeting revised the IMF's Articles of Agreement include ..... A) Gold was declared as a reserve asset. B) Fixed rates were declared acceptable. C) Floating rates were declared acceptable. D) None of the above. Show Answer Correct Answer: C) Floating rates were declared acceptable. 6. What is the role of financial intermediaries? A) To manage government funds. B) To facilitate the borrowing and lending process between savers and borrowers. C) To regulate inflation. D) To create new financial products. Show Answer Correct Answer: B) To facilitate the borrowing and lending process between savers and borrowers. 7. When a trade bill is accepted by a commercial bank, it is known as a ..... A) Commercial Bill. B) Call money. C) None of these. D) Certificate of deposit. Show Answer Correct Answer: A) Commercial Bill. 8. Which type of financial organization is a nonprofit service cooperative? A) Commercial bank. B) Credit union. C) Insurance company. D) Mutual fund. Show Answer Correct Answer: B) Credit union. 9. "Yield" A) Money received after making an investment. B) Percentage of an original investment that an investor collects. C) The rate of return on a bond. D) The interest rate a bond seller pays a bond buyer. Show Answer Correct Answer: C) The rate of return on a bond. 10. The depository institutions include? A) Mutual funds. B) Saving banks. C) Commercial banks and thrifts. D) Credit unions. Show Answer Correct Answer: C) Commercial banks and thrifts. 11. ..... is the difference between a higher selling price and a lower selling price, resulting in a financial gain for the seller. A) Yield. B) Capital loss. C) Capital gain. D) None of the above. Show Answer Correct Answer: C) Capital gain. 12. ..... is short term finance repayable on demand with a maturity period of 1 day to 15 days A) Call Money. B) Equity Shares. C) T-bills. D) Commercial Bill. Show Answer Correct Answer: A) Call Money. 13. In which market are government securities primarily traded? A) Capital market. B) Money market. C) Commodity market. D) Foreign exchange market. Show Answer Correct Answer: B) Money market. 14. Types of market for intermediate or long-term debt and corporate stocks. A) Stock markets. B) Futures markets. C) Derivatives markets. D) Capital markets. Show Answer Correct Answer: D) Capital markets. 15. What is the goal of impact investing? A) To minimize investment risks. B) To focus solely on short-term gains. C) To maximize financial returns only. D) To generate positive social and environmental impact. Show Answer Correct Answer: D) To generate positive social and environmental impact. 16. In the equation MV = PT, 'P' stands for: A) Production level. B) Purchasing power. C) Price level. D) Profit margin. Show Answer Correct Answer: C) Price level. 17. Which of the following is NOT a component of the financial system? A) Commercial Banks. B) Investment Banks. C) Insurance Providers. D) Retail Stores. Show Answer Correct Answer: D) Retail Stores. 18. What does "ask" mean? A) The lowest price currently offered to sell a stock. B) The price at which a stock was last traded. C) The average price of a stock over the last month. D) The highest price currently offered to buy a stock. Show Answer Correct Answer: A) The lowest price currently offered to sell a stock. 19. If a bank pays 3% interest on savings, how much interest will it change for loans? A) 3%. B) Less than 3%. C) More than 3%. D) The discount rate. Show Answer Correct Answer: C) More than 3%. 20. Mobilization of savings for short-term investment is a key role of the: A) Capital market. B) Stock exchange. C) Money market. D) Foreign exchange market. Show Answer Correct Answer: C) Money market. 21. Finance functions are ..... A) Planning of funds. B) Raising of funds. C) Allocation of Resource. D) All the above. Show Answer Correct Answer: D) All the above. 22. What factor/s affect the interest rate? A) Government borrowings. B) Supply of money. C) Inflation rate. D) All of the above. E) Not Attempted. Show Answer Correct Answer: D) All of the above. 23. Represents ownership in the corporation A) Value. B) Interest. C) Stock or share. D) Coupon. Show Answer Correct Answer: C) Stock or share. 24. You plan to borrow $ 2, 000 now and repay it in 5 equal annual installments at the end of each year. If the annual interest rate is 11%, how much will your annual payments be? A) $ 401.84. B) $ 541.14. C) $ 400.00. D) $ 444.00. Show Answer Correct Answer: B) $ 541.14. 25. What is the major function of APRA? A) Conduct MP. B) Protection of consumers in the financial system. C) Regulation of the share market. D) The prudential supervision of banks. Show Answer Correct Answer: D) The prudential supervision of banks. ← 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