This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 30 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The interest rate that a bondholder receives every year until the bond matures is called the A) Bond rating. B) Coupon rate. C) Mature value. D) Par value. Show Answer Correct Answer: B) Coupon rate. 2. A type of market in which each transaction takes place at predetermined time intervals A) Call Market. B) Financial Market. C) Bond Market. D) Continuous Market. Show Answer Correct Answer: A) Call Market. 3. In a period of prolonged economic growth and rising inflation, the Central bank is more likely to: A) Raise interest rates to cool down the economy. B) Lower interest rates to cool down the economy. C) Increase interest rates to stimulate further the economy. D) Decrease interest rates to stimulate further the economy. Show Answer Correct Answer: A) Raise interest rates to cool down the economy. 4. What is the purpose of a bond market? A) To allow governments to issue currency directly to the public. B) To provide a platform for trading stocks and shares. C) The purpose of a bond market is to enable the issuance and trading of debt securities, allowing entities to raise capital and investors to earn returns. D) To facilitate the buying and selling of real estate properties. Show Answer Correct Answer: C) The purpose of a bond market is to enable the issuance and trading of debt securities, allowing entities to raise capital and investors to earn returns. 5. Mr Fan invested RM 20, 000 in Bursa Malaysia. What are the benefits of investing in shares to Mr Fan? I enjoy fixed income annuallyII convert to cash easilyIII earn capital gainIV enjoy interest A) A I, III. B) B I, IV. C) C II, III. D) D II, IV. Show Answer Correct Answer: C) C II, III. 6. Current, the book value per share is GBP 40.50. The company has announced 2 for 5 bonus share issue. The book value per share after the Bonus issue could be, A) GBP 40.50. B) GBP 5.78. C) GBP 8.1. D) GBP 28.92. Show Answer Correct Answer: D) GBP 28.92. 7. What is the primary purpose of the money market? A) Long-term investment. B) Short-term, highly liquid debt securities. C) Real estate investment. D) Stock trading. Show Answer Correct Answer: B) Short-term, highly liquid debt securities. 8. Imagine you are an investor. You are in a market where you directly negotiate and transact business with other investors, without any intermediary such as resellers. What type of market is this? A) Primary Market. B) Foreign Exchange Market. C) Equity Market. D) Auction Market. Show Answer Correct Answer: A) Primary Market. 9. What is the main focus of capital markets? A) Short-term debt instruments. B) Long-term securities. C) Currency exchange. D) Commodity trading. Show Answer Correct Answer: B) Long-term securities. 10. What is the main purpose of insurance in financial planning? A) To provide loans. B) To manage investments. C) To protect against significant financial losses. D) To offer tax benefits. Show Answer Correct Answer: C) To protect against significant financial losses. 11. Dua jenis pasar dalam sekuritas modal dilihat dari metode perdagangannya adalah ..... dan ..... A) Formal Exchange. OTC Exchange. B) Public Exchange, Private Exchange. C) Organized Exchange, OTC Exchange. D) Public Exchange, Phone Exchange. Show Answer Correct Answer: C) Organized Exchange, OTC Exchange. 12. What is a bond or preferred stock that gives the holder the right to exchange it for common stock called? A) Equity share. B) Debt instrument. C) Convertible security. D) Warrant. Show Answer Correct Answer: C) Convertible security. 13. Which of the following markets deal in securirties with maturity of less than one year? A) Primary market. B) Secondary market. C) Money market. D) Capital market. Show Answer Correct Answer: C) Money market. 14. A collection of financial assets is often called A) A return. B) A coupon rate. C) A portfolio. D) A prospectus. Show Answer Correct Answer: C) A portfolio. 15. Who issues tax exempt municipal bonds? A) State and local governments. B) Local commercial banks. C) Local credit unions. D) Federal and state governments. Show Answer Correct Answer: A) State and local governments. 16. Which channel is considered as the flow of fund without intermediaries? A) Direct financing. B) Commercial bank. C) Indirect financing. D) Centralized financing. Show Answer Correct Answer: A) Direct financing. 17. Which segment of the financial market deals with instruments maturing in less than a year? A) Capital Market. B) Commodity Market. C) Money Market. D) Foreign Exchange Market. Show Answer Correct Answer: C) Money Market. 18. Complete the sentenceDue to stock splits and other factors discussed in class, stock price A) Is a factor use when determining the future value of an investment. B) Tells an investor very little about the future value of an investment. C) Is the most important factor in determining the future value of an investment. D) None of the above. Show Answer Correct Answer: B) Tells an investor very little about the future value of an investment. 19. ..... is defined as the amount paid to purchase a bond that will be repaid at maturity. A) Maturity. B) Par value. C) Coupon rate. D) None of the above. Show Answer Correct Answer: B) Par value. 20. What is the role of financial intermediaries in the circular flow of the financial system? A) They create money by printing currency. B) They facilitate the flow of funds between savers and borrowers. C) They set interest rates for all financial transactions. D) They regulate the stock market. Show Answer Correct Answer: B) They facilitate the flow of funds between savers and borrowers. 21. How does a steep yield curve help annuity providers? A) It reduces risk on payouts. B) It allows better annuity returns by locking high long-term bond rates. C) It reduces default rates. D) It increases FD rates. Show Answer Correct Answer: B) It allows better annuity returns by locking high long-term bond rates. 22. What is the amount that a bond issuer owes the bondholder at maturity called? A) Yield to maturity. B) Market value. C) Coupon rate. D) Face value or par value. Show Answer Correct Answer: D) Face value or par value. 23. What is a formal IOU issued by a corporation or government called? A) Loan. B) Bond. C) Mortgage. D) Equity. Show Answer Correct Answer: B) Bond. 24. Which of the following cannot be called as a debt instrument as referred to in financial transactions? A) Certificate of deposit. B) Bonds. C) Stocks. D) Loans. Show Answer Correct Answer: D) Loans. 25. What remains unchanged if you sell the bond to someone else? A) Face value. B) Market price. C) Coupon rate. D) Redemption date. Show Answer Correct Answer: A) Face value. ← 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