This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 29 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A level of performance that describes using the least amount of input to achieve the highest amount of output. A) Efficiency. B) Commodity. C) Liquidity. D) Market. Show Answer Correct Answer: A) Efficiency. 2. Listing requirements for the Second-Tier Securities Market are generally ..... for small/medium enterprises. A) More stringent. B) Less stringent. C) The same as the main market. D) Non-existent. Show Answer Correct Answer: B) Less stringent. 3. Which of the following statements is not true with regard to money market? A) It involves low market risk. B) It is situated at specific locations. C) Deals in unsecured and short-term debt instruments. D) The instruments traded are highly liquid. Show Answer Correct Answer: B) It is situated at specific locations. 4. What age must you be in order to withdraw from your 401k without any penalty? A) 59 years old. B) 59.5 years old. C) 65 years old. D) Doesn't matter what age. Show Answer Correct Answer: B) 59.5 years old. 5. What is meant by the term 'stock' in a financial market? A) A type of loan issued by a company. B) A certificate of deposit issued by a bank. C) An ownership share in a company. D) A government bond. Show Answer Correct Answer: C) An ownership share in a company. 6. What does a full service broker provide? A) A wide range of services such as market research, investment advice, and tax planning in addition to carrying out your trades. B) Basic trading services without additional support. C) Only tax planning services without investment advice. D) Exclusive access to high-risk investment opportunities. Show Answer Correct Answer: A) A wide range of services such as market research, investment advice, and tax planning in addition to carrying out your trades. 7. What is the primary function of a financial market? A) To facilitate the exchange of goods and services. B) To make a profit for investors. C) To facilitate the exchange of assets, securities, and commodities. D) To regulate financial institutions. Show Answer Correct Answer: C) To facilitate the exchange of assets, securities, and commodities. 8. Which of the following best describes the function of financial intermediaries in financial markets? A) They manufacture goods for export. B) They connect savers with borrowers. C) They regulate government policies. D) They provide legal advice to investors. Show Answer Correct Answer: B) They connect savers with borrowers. 9. Two issues that play a major role in setting an investment objective. A) Time and results. B) Time and income. C) Diversification and return. D) Risk and return. Show Answer Correct Answer: B) Time and income. 10. Which of the following financial intermediaries commonly invests in stocks and bonds? A) Insurance companies. B) Pension funds. C) Mutual funds. D) All of these. Show Answer Correct Answer: D) All of these. 11. New York Stock Exchange is an example of A) Liquid markets. B) Capital markets. C) Money markets. D) Short-term markets. Show Answer Correct Answer: B) Capital markets. 12. When making a risky investment, investors usually demand a ..... A) Higher selling price. B) Lower compensation. C) Higher compensation. D) Lower purchasing price. Show Answer Correct Answer: C) Higher compensation. 13. The following share holders have no voting rights A) Equity. B) Preference. C) Common. D) None. Show Answer Correct Answer: B) Preference. 14. Which role of financial markets involves determining the prices of financial assets? A) Allocation of Capital. B) Risk Management. C) Price Discovery. D) Economic Growth. Show Answer Correct Answer: C) Price Discovery. 15. The 'jobber's turn' is the difference between his: A) Quoted price and actual transaction price. B) Selling and buying price. C) Commission earned and expenses. D) Short-term and long-term investment returns. Show Answer Correct Answer: B) Selling and buying price. 16. What did the Financial Services Modernization Act of 1999 do? A) It mandated that all banks must offer insurance services. B) It strengthened the Glass-Steagall Act's restrictions on banks. C) It reversed the Glass-Steagall Act's prohibition of commercial banks selling insurance or acting as investment banks. D) It allowed banks to only sell stocks and bonds. Show Answer Correct Answer: C) It reversed the Glass-Steagall Act's prohibition of commercial banks selling insurance or acting as investment banks. 17. The objectives of SEBI include A) To protect interests of inventors. B) To regulate securities market. C) To promote the development of the market. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. An asset which gets its value from a contractual right or ownership claim A) Financial Asset. B) Fictitious Asset. C) Non financial asset. D) Fixed asset. Show Answer Correct Answer: A) Financial Asset. 19. Stabilization of prices of ..... is a function of the stock exchange. A) Consumer goods. B) Securities. C) Foreign currencies. D) Raw materials. Show Answer Correct Answer: B) Securities. 20. Who are the major investors in capital market A) Individual Investors. B) Insurance companies. C) Government Agencies. D) Treasury Department. Show Answer Correct Answer: B) Insurance companies. 21. America's oldest & most powerful stock exchange is called A) NASDAQ. B) The New York Stock Exchange. C) E Trade. D) Open Market Trade Commission. Show Answer Correct Answer: B) The New York Stock Exchange. 22. What is the significance of stock market indices? A) Stock market indices are used to predict the weather. B) Stock market indices help investors assess the performance of the market and make investment decisions. C) Stock market indices are only relevant for large corporations. D) Stock market indices have no impact on the economy. Show Answer Correct Answer: B) Stock market indices help investors assess the performance of the market and make investment decisions. 23. The following are advantages of efficient credit programme EXCEPT A) Farmers face less debt obligation burden. B) Higher rates of repayment. C) Less credit diversion. D) Less difficult collection problems for the debtor. Show Answer Correct Answer: D) Less difficult collection problems for the debtor. 24. Inggris, Amerika Serikat dan Jepang menyumbang lebih dari setengah dari semua perdagangan mata uang global. Mata uang yang mendominasi pasar valuta asing adalah ..... A) Yen. B) Euro. C) USD. D) Pounds. Show Answer Correct Answer: C) USD. 25. The trade-off for investing in real estate is A) Never getting your money back. B) Not being able to get your money quickly. C) Being able to sell property on short notice. D) Making a large profit. Show Answer Correct Answer: B) Not being able to get your money quickly. ← 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