This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 27 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the full form of NEFT? A) National Electronic Funds Transfer. B) National Efficient Funds Transfer. C) National Electronic Fund Transaction. D) National Efficient Fund Transaction. Show Answer Correct Answer: A) National Electronic Funds Transfer. 2. An money market instruments issued on behalf of Central Government. A) Call Money. B) Treasury Bill. C) Commercial Paper. D) Commercial Bill. Show Answer Correct Answer: B) Treasury Bill. 3. Banks hold excess and secondary reserves to A) Reduce the interest-rate risk problem. B) Provide for unexpected deposit outflows. C) Satisfy margin requirements. D) Achieve higher earnings than they can with loans. Show Answer Correct Answer: B) Provide for unexpected deposit outflows. 4. Market where financial assets are resold A) Primary market. B) Secondary market. C) Tertiary market. D) Money market. Show Answer Correct Answer: B) Secondary market. 5. Which of the following is regulatory body for stock market? A) RBI. B) SEBI. C) IRDA. D) SBI. Show Answer Correct Answer: B) SEBI. 6. Financial markets have the basic function of A) Bringing together people to lend funds & people who want to borrow funds. B) Assuring that the swings in the business cycle are less pronounced. C) Assuring that governments need never resort to printing money. D) Assuring a stable interest rate. Show Answer Correct Answer: A) Bringing together people to lend funds & people who want to borrow funds. 7. In the budget of 2020, Finance minister mentioned the plan of releasing the Initial Public offer of A) IRCTC. B) Shipping corporation of India. C) LIC of India. D) NTPC. Show Answer Correct Answer: C) LIC of India. 8. Treasury bills are also known as: A) Fixed interest Bonds. B) Flat Rate Bonds. C) Low-Interest Bonds. D) Zero-Coupon Bonds. Show Answer Correct Answer: D) Zero-Coupon Bonds. 9. Which of the following is NOT a source of borrowings for a bank? A) Federal funds. B) Eurodollars. C) Transaction deposits. D) Discount loans. Show Answer Correct Answer: C) Transaction deposits. 10. Which component of retirement benefits is fully tax-free for both government and private employees (if conditions are met)? A) PPF maturity. B) Leave encashment. C) Gratuity above ₹ 20 lakh. D) None of the above. Show Answer Correct Answer: A) PPF maturity. 11. Which of the following is not a part of capital market? A) Stock Exchange. B) RBI. C) Financial Institutions. D) Bank. Show Answer Correct Answer: B) RBI. 12. Which of the following performs the functions of giving imputes to saving andtransfer them to more productive uses? A) Wholesale Market. B) Retail Market. C) Financial Market. D) Financial Institutions. Show Answer Correct Answer: C) Financial Market. 13. What are the risks associated with investing in financial markets? A) Operational risk. B) Market risk, credit risk, liquidity risk, interest rate risk, geopolitical risk. C) Inflation risk. D) Regulatory risk. Show Answer Correct Answer: B) Market risk, credit risk, liquidity risk, interest rate risk, geopolitical risk. 14. What are CBAs and what are their main functions A) Central borrowing authorities and theyprovide finance for public corporations. B) Central Banking Authorities and they borrow funds. C) Canterlink Banking Authorities and they provide finance for public corporations. D) Centerlink Banking Authorities and they borrow funds. Show Answer Correct Answer: A) Central borrowing authorities and theyprovide finance for public corporations. 15. Farm records are important for the following purposes EXCEPT A) Evaluation of performance. B) Insurance purposes. C) Decision making. D) Interest rate determination. Show Answer Correct Answer: D) Interest rate determination. 16. How do risk and return relate to equity and bond valuation? A) Risk and return are directly related in both equity and bond valuation. B) Risk and return are inversely related in both equity and bond valuation. C) Risk and return are inversely related in bond valuation and directly related in equity valuation. D) Risk and return have no impact on equity valuation but affect bond valuation. Show Answer Correct Answer: C) Risk and return are inversely related in bond valuation and directly related in equity valuation. 17. Holding all else constant, when a bank receives the funds for a deposited check A) Cash items in the process of collection fall by the amount of the check. B) Bank assets increase by the amount of the check. C) Bank liabilities decrease by the amount of the check. D) Bank reserves increase by the amount of required reserves. Show Answer Correct Answer: A) Cash items in the process of collection fall by the amount of the check. 18. A market in which only the original issuer can sell or repurchase a financial asset A) Portfolio diversification. B) Primary market. C) Risk. D) Savings. E) Secondary market. Show Answer Correct Answer: B) Primary market. 19. Why are stockbrokers not taxed under LTCG for client transactions? A) They operate from outside India. B) They don't own the capital assets. C) Brokers get exemptions from CBDT. D) They pay STT on all trades. Show Answer Correct Answer: B) They don't own the capital assets. 20. What happens to the price of long-term bonds when interest rates fall? A) It increases. B) No impact. C) It decreases. D) It remains constant. Show Answer Correct Answer: A) It increases. 21. Full form of e-IPOs A) Electronic internet Public Offer. B) Electronic Initial Private Offer. C) Electronic Initial Prospectus Offer. D) Electronic Initial Public Offer. Show Answer Correct Answer: D) Electronic Initial Public Offer. 22. A $ 100 deposit into my checking account at My Bank increases my checkable deposits by $ 100, and the bank's ..... by $ 100. A) Reserves. B) Loans. C) Capital. D) Securities. Show Answer Correct Answer: A) Reserves. 23. Demand deposits are considered money because: A) They earn interest. B) They are issued by government. C) They are transferable by cheque. D) They cannot be withdrawn. Show Answer Correct Answer: C) They are transferable by cheque. 24. What is a day trader? A) One who deals with the U.S. market only. B) Someone who holds onto their investments for a long period of time. C) One who buys & sells stocks on a minute by minute basis to try to make a quick profit. D) One who specializes in certain kinds of stocks that are related to people's day-to-day needs. Show Answer Correct Answer: C) One who buys & sells stocks on a minute by minute basis to try to make a quick profit. 25. Financial Market is classified into A) Organized and unorganized market. B) Regulatory and non-regulatory market. C) Reformatory and non-reformatory market. D) Controlled and uncontrolled Market. Show Answer Correct Answer: A) Organized and unorganized market. ← 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