This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 28 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Under ..... lease, the lessee has the option to buy the asset at the end of the lease term. A) Financial/Capital. B) Operating. C) Leverage. D) Sale and lease back. Show Answer Correct Answer: A) Financial/Capital. 2. Unit trusts are described as open-ended funds because they: A) Restrict the number of shares issued. B) Are not regulated. C) Always accept new investments. D) Only invest in government securities. Show Answer Correct Answer: C) Always accept new investments. 3. What do we call the money a bank lends to someone to buy a house? A) Investment. B) Mortgage. C) Equity. D) Stock. Show Answer Correct Answer: B) Mortgage. 4. Through which method of floatation companies allots securities to institutional investors and selected individuals. A) Offer for sale. B) Right issue. C) E-IPO's. D) Private Placement. Show Answer Correct Answer: D) Private Placement. 5. Cost of capital can be divided into three item except; A) Cost of debt. B) Cost of preferred share. C) Cost of investment. D) Cost of common share. Show Answer Correct Answer: C) Cost of investment. 6. This term refers to how easily an asset can be converted to cash: A) Liquidity. B) Commodity. C) Currency. D) Eurobond. Show Answer Correct Answer: A) Liquidity. 7. What does the acronym ETF stand for in the context of financial markets? A) Electronic Trading Fund. B) Exchange Traded Fund. C) Equity Trading Facility. D) Economic Trade Federation. Show Answer Correct Answer: B) Exchange Traded Fund. 8. The "Red Flags Rule" mandates that companies must disclose data breaches to customers, protect consumer data, prevent fraud and identity theft, and ensures training and compliance to spot identity theft and leak issues A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. The length of time you need to work at a company before you can take the employer's matching contribution with you is known as A) Mutual funds. B) 401(k) plans. C) Diversification. D) Vesting. Show Answer Correct Answer: D) Vesting. 10. Doves favour A) Tight monetary policy. B) Loose monetary policy. C) All the above. D) None of the above. Show Answer Correct Answer: B) Loose monetary policy. 11. A treasury bill is an instrument of: A) Dividend. B) Short term debt. C) Long term debt Interest. D) None of the above. Show Answer Correct Answer: B) Short term debt. 12. According to the Efficient Market Hypothesis, in an efficient market: A) Prices lag behind information. B) Insider trading guarantees profits. C) Prices fully reflect available information. D) Prices remain constant. Show Answer Correct Answer: C) Prices fully reflect available information. 13. A(n) ..... is a stock that reinvests its earnings in the business instead of paying regular dividends. A) Growth stock. B) Municipal bond. C) Mutual fund. D) None of the above. Show Answer Correct Answer: A) Growth stock. 14. In the equation MV = PT, 'M' stands for: A) Market demand. B) Supply of money. C) Marginal utility. D) Monetary policy. Show Answer Correct Answer: B) Supply of money. 15. Which of the following are primary concerns of the bank manager? A) Maintaining sufficient reserves to minimize the cost to the bank of deposit outflows. B) Extending loans to borrowers who will pay low interest rates, but who are poor credit risks. C) Acquiring funds at a relatively high cost, so that profitable lending opportunities can be realized. D) Maintaining high levels of capital and thus maximizing the returns to the owners. Show Answer Correct Answer: A) Maintaining sufficient reserves to minimize the cost to the bank of deposit outflows. 16. Secondary market deals with the ..... of existing securities. A) Purchase. B) Sale. C) Purchase-sale. D) Stock. Show Answer Correct Answer: C) Purchase-sale. 17. When a new depositor opens a checking account at the First National Bank, the bank's assets ..... and its liabilities ..... A) Increase; increase. B) Increase; decrease. C) Decrease; increase. D) Decrease; decrease. Show Answer Correct Answer: A) Increase; increase. 18. What is market capitalization? A) Market capitalization is the total revenue of a company. B) Market capitalization is the total market value of a company's outstanding shares of stock. C) Market capitalization is the total profit a company makes annually. D) Market capitalization refers to the number of employees in a company. Show Answer Correct Answer: B) Market capitalization is the total market value of a company's outstanding shares of stock. 19. The jobber's profit is known as: A) Brokerage. B) Commission. C) The jobber's turn. D) Spread. Show Answer Correct Answer: C) The jobber's turn. 20. What is the primary source of funds for commercial banks? A) Investment income. B) Deposits. C) Borrowings. D) Equity capital. Show Answer Correct Answer: B) Deposits. 21. Sit outflow results in equal reductions in A) Loans and reserves. B) Assets and liabilities. C) Reserves and capital. D) Assets and capital. Show Answer Correct Answer: B) Assets and liabilities. 22. In which market would a company issue new shares to the public for the first time? A) Secondary Market. B) Derivatives Market. C) Foreign Exchange Market. D) Primary market. Show Answer Correct Answer: D) Primary market. 23. Which organization manages monetary policy in India? A) RBI. B) SEBI. C) Ministry of Finance. D) IMF. Show Answer Correct Answer: A) RBI. 24. Who deals directly with the public, acting as their agents in the stock exchange? A) Jobbers. B) Stock Brokers. C) Underwriters. D) Issuing houses. Show Answer Correct Answer: B) Stock Brokers. 25. Money market provides ..... A) Medium term Funds. B) Short term Funds. C) Long term Funds. D) Shares. Show Answer Correct Answer: B) Short term Funds. ← 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