This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 33 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 33 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. To finance the building of a new police station, a local government is most likely to issue a A) Money market bond. B) Municipal bond. C) Treasury bond. D) High-yield bond. Show Answer Correct Answer: B) Municipal bond. 2. Which of the following is not true with respect to spot market liquidity? A) The more willing buyers and sellers there are, the more liquid a market is. B) The spot markets for heavily traded currencies such as the Japanese yen are very liquid. C) A currency's liquidity affects the ease with which an MNC can obtain or sell that currency. D) If a currency is illiquid, an MNC is typically able to quickly purchase that currency at a reasonable exchange rate. Show Answer Correct Answer: D) If a currency is illiquid, an MNC is typically able to quickly purchase that currency at a reasonable exchange rate. 3. The Message Window in the NEAT system is used to: A) Display detailed financial reports. B) Provide market news, corporate actions, and auction-related information SIR. C) Display orders placed by the user. D) Execute trades automatically. Show Answer Correct Answer: B) Provide market news, corporate actions, and auction-related information SIR. 4. An investor who prefers lower returns with known risks rather than higher returns with unknown risks. A) Bears and pigs. B) Bulls and chicken. C) Risk-neutral. D) None of the above. Show Answer Correct Answer: B) Bulls and chicken. 5. A person who buys or sells equities for his or her clients is a A) Insurance agent. B) Financial advisor. C) Stockbroker. D) Accountant. Show Answer Correct Answer: C) Stockbroker. 6. The main regulator of the capital market in India is: A) RBI. B) NABARD. C) SEBI. D) Ministry of Finance. Show Answer Correct Answer: C) SEBI. 7. Development stocks and Government bonds are instruments of the: A) Money market. B) Capital market. C) Foreign exchange market. D) Commodity market. Show Answer Correct Answer: B) Capital market. 8. Which of the following are reported as assets on a bank's balance sheet? A) Borrowings. B) Reserves. C) Savings deposits. D) Bank capital. Show Answer Correct Answer: B) Reserves. 9. Investors look for the following while investing A) Return. B) Risk. C) Liquidity. D) All. Show Answer Correct Answer: D) All. 10. "Stock Exchange" A) A person who manages the buying and selling of stocks. B) A market where stocks can be bought and sold. C) The range of investments held by a person or organization. D) A report that describes a company's financial history. Show Answer Correct Answer: B) A market where stocks can be bought and sold. 11. Which financial institution handles insurance regulation in India? A) IRDAI. B) SEBI. C) RBI. D) SIDBI. Show Answer Correct Answer: A) IRDAI. 12. Foreign exchange A) Financial institution. B) Financial instrument. C) Financial market. D) None of the above. Show Answer Correct Answer: C) Financial market. 13. Which financial market is known for trading long-term debt securities with maturities A) Stock Market. B) Forex Market. C) Commodity Market. D) Bond Market. Show Answer Correct Answer: D) Bond Market. 14. What is one way to avoid herd instinct? A) Investing in what is trending on Twitter. B) Following the advice of celebrity investors. C) Buying stocks that have the highest growth in the past year. D) Doing your own research and developing your own opinions. Show Answer Correct Answer: D) Doing your own research and developing your own opinions. 15. Which of the following are NOT reported as assets on a bank's balance sheet? A) Cash items in the process of collection. B) Deposits with other banks. C) U.S. Treasury securities. D) Checkable deposits. Show Answer Correct Answer: D) Checkable deposits. 16. One helpful guideline for investing is that A) The longer you have to invest, the more risk you can take. B) The less time you have to invest, the more risk you should take. C) You should invest in stocks before paying off credit card debt. D) If you have a low income, you must worry about tax liability first. Show Answer Correct Answer: A) The longer you have to invest, the more risk you can take. 17. A broker has bought 100 shares of PVR on behalf of client A. He has also sold 1000 shares of PVR for client B on the same day. How will he settle delivery obligations with the clearing corporation? A) Receive 100 shares from and deliver 1000 shares to the clearing corporation. B) Receive 100 shares first and then deliver 1000 shares to the clearing corporation. C) Deliver 900 shares net to the clearing corporation. D) None of the above. Show Answer Correct Answer: C) Deliver 900 shares net to the clearing corporation. 18. The market value size of outstanding instruments of capital markets depends on factors? A) Primary cash flows. B) Number of issued securities. C) Market prices of securities. D) Number of issued securities and market prices of securities. Show Answer Correct Answer: D) Number of issued securities and market prices of securities. 19. What does FII stand for? A) Foreign Institutional Investor. B) Foreign Interest Investment. C) Federal Interest Investment. D) Foreign Income Investor. Show Answer Correct Answer: A) Foreign Institutional Investor. 20. The money market where debt and stocks are traded and maturity period is more than a year is classified as: A) Shorter term markets. B) Capital Markets. C) Counter markets. D) Long-term markets. Show Answer Correct Answer: B) Capital Markets. 21. Investment banks help companies raise capital by helping corporations design securities with features that are currently attractive to investors. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 22. Intermediaries who are agents of investors and match buyers with sellers of securities are called? A) Investment bankers. B) Traders. C) Brokers. D) Dealers. Show Answer Correct Answer: C) Brokers. 23. Corporate bonds are issued by ..... A) Private Companies. B) Local Governments. C) The Federal Government. D) Banks. Show Answer Correct Answer: A) Private Companies. 24. ..... is the organizations, institutions that provide long term funds. A) Capital market. B) Money market. C) Primary market. D) Secondary market. Show Answer Correct Answer: A) Capital market. 25. What is the main objective of the RBI's monetary policy? A) Control inflation. B) Promote savings. C) Regulate imports. D) Tax collection. Show Answer Correct Answer: A) Control inflation. ← 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