This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 3 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are the key marketing elements to launch a new financial service? A) Market trends, customer feedback, advertising budget, social media presence, competitor analysis, sales tactics. B) Target audience, value proposition, marketing strategy, digital channels, compliance, partnerships. C) All the above. D) None of the above. Show Answer Correct Answer: B) Target audience, value proposition, marketing strategy, digital channels, compliance, partnerships. 2. What is the purpose of attaching covenants to a security? A) To impact the interest rate. B) To increase stock value. C) To stabilize currency. D) To reduce inflation. Show Answer Correct Answer: A) To impact the interest rate. 3. SEBI was established in which year? A) 1988 (statutory in 1992). B) 1988 (statutory in 1992). C) 1991. D) 1995. Show Answer Correct Answer: A) 1988 (statutory in 1992). 4. Primary market is also called as A) Secondary market. B) Money market. C) New Issue Market. D) Indirect Market. Show Answer Correct Answer: C) New Issue Market. 5. A liability is ..... A) Something that incurs interest. B) Something that is owned. C) Something that is owed. D) Something that grows. Show Answer Correct Answer: C) Something that is owed. 6. Which of the following is an asset on a retail bank's balance sheet? A) Share Capital. B) Advances. C) Long Term Borrowing. D) Retained profit. Show Answer Correct Answer: B) Advances. 7. It refers to a public markets that exist for issuing, buying, and selling stocks that trade on a stock exchange or over-the-counter. A) Stock Markets. B) Public Markets. C) Market. D) Trade Market. Show Answer Correct Answer: A) Stock Markets. 8. The money return a stockholder receives on the amount invested in a company is a A) Capital loss. B) Dividend. C) Bond. D) Risk. Show Answer Correct Answer: B) Dividend. 9. The Reserve Bank of India (RBI) is the regulator for the capital market. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 10. In the context of bonds, what does the term "coupon rate" refer to? A) The rate at which the bond's price fluctuates. B) The interest rate that the bond issuer will pay to the bondholder. C) The rate at which new bonds are issued. D) The rate at which bonds are bought back by the issuer. Show Answer Correct Answer: B) The interest rate that the bond issuer will pay to the bondholder. 11. The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW Jones Industrial Average important? A) It tells Americans how much debt the country is in. B) It helps economists predict when a stock market crash will happen. C) It tells Americans how many jobs are out there. D) It provides a snapshot of how the stock market and the US economy is doing. Show Answer Correct Answer: D) It provides a snapshot of how the stock market and the US economy is doing. 12. SEBI protects the interest of A) Investor. B) Companies. C) Brokers. D) None of the above. Show Answer Correct Answer: A) Investor. 13. Apa perbedaan utama antara bank syariah dan bank konvensional? A) Bank syariah tidak memberikan layanan pinjaman. B) Bank syariah tidak mengenakan bunga, tetapi menggunakan sistem bagi hasil. C) Bank syariah hanya beroperasi di negara Islam. D) Bank syariah hanya melayani umat Muslim. Show Answer Correct Answer: B) Bank syariah tidak mengenakan bunga, tetapi menggunakan sistem bagi hasil. 14. Which of the following falls in the Category of Zero Coupon Bond? A) Treasury Bill. B) Commercial Paper. C) Certificate of Deposit. D) Commercial Bill. Show Answer Correct Answer: A) Treasury Bill. 15. What is the difference between commercial banks and investment banks? A) Commercial banks focus on deposits and loans; investment banks focus on underwriting and advisory services. B) Commercial banks are government-owned; investment banks are privately held firms. C) Commercial banks provide financial advice; investment banks focus on consumer loans. D) Commercial banks invest in stocks and bonds; investment banks handle personal savings. Show Answer Correct Answer: A) Commercial banks focus on deposits and loans; investment banks focus on underwriting and advisory services. 16. An ..... is simply the rate at which one currency is converted into another. A) Exchange rate. B) Conversion rate. C) Interest rate. D) None of the above. Show Answer Correct Answer: A) Exchange rate. 17. Which of the following is a money market instrument? A) Treasury bills. B) Treasury bills. C) Equity shares. D) Corporate bonds. Show Answer Correct Answer: A) Treasury bills. 18. Which of the following bank assets is the most liquid? A) Consumer loans. B) Reserves. C) State and local government securities. D) U.S. government securities. Show Answer Correct Answer: B) Reserves. 19. Which is the best description of a 'money market' A) Those people and organisations who want money and the people and organisations who are willing and able to supply money. B) Any place where buyers and sellers come together. C) The exchanges made in an economy for goods and services. D) A financial institution where investors can make deposits. Show Answer Correct Answer: A) Those people and organisations who want money and the people and organisations who are willing and able to supply money. 20. ..... the interest coverage ratio better is the firm's ability to meet its interest burden. A) Higher. B) Lower. C) Does not matter. D) None of the above. E) Not Attempted. Show Answer Correct Answer: A) Higher. 21. The price of a bond including accrued interest, also known as A) Dirty Price-Accrued Interest. B) Face Value + Coupon. C) Coupon Rate x Face Value. D) Purchase Price + Interest. Show Answer Correct Answer: A) Dirty Price-Accrued Interest. 22. The money put into this type of account has already had taxes taken out. A) Pension. B) 401K. C) Roth IRA. D) Traditional IRA. Show Answer Correct Answer: C) Roth IRA. 23. The minimum period till which a debt instrument must be retained in order to qualify as Long Term is: A) 1 year. B) 2 year. C) 3 year. D) 4 year. Show Answer Correct Answer: C) 3 year. 24. Raghav, age 23, has just started earning. What will be his approach towards investments? A) Wealth consolidation. B) Wealth accumulation. C) All the above. D) None of the above. Show Answer Correct Answer: A) Wealth consolidation. 25. If interest rates rise, speculative demand for money will: A) Increase. B) Decrease. C) Stay constant. D) Become unpredictable. Show Answer Correct Answer: B) Decrease. ← 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 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 10Class 12 Business Studies Chapter 10 Financial Markets Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books