This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 34 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these is not a function of SEBI? A) Protecting investor interests. B) Regulating securities market. C) Controlling monetary policy. D) Controlling monetary policy. Show Answer Correct Answer: C) Controlling monetary policy. 2. Solve a numerical problem on equity valuation. A) $ 60. B) $ 40. C) $ 25. D) $ 15. Show Answer Correct Answer: B) $ 40. 3. Three ways people can save money with little risk include ..... A) Have a savings account, buying certificates of deposit, buying stock. B) Buying an insurance policy, contributing to a finance company, buying CDs. C) Have a savings account, buying certificates of deposit, buying an insurance policy. D) Buying an insurance policy, contributing to a pension fund, buying stock. Show Answer Correct Answer: C) Have a savings account, buying certificates of deposit, buying an insurance policy. 4. A marketable document of title to a time deposit for a specified period may be referred to as a ..... A) Treasury Bill. B) Certificate of Deposit. C) Commercial Bill. D) Government Securitites. Show Answer Correct Answer: B) Certificate of Deposit. 5. Which of the following is an advantage of a 401(k) plan? A) Most employers match a portion of your contributions. B) You never pay taxes on your contributions. C) You may withdraw funds at any time without penalty. D) Your contributions are invested in high-return, high-risk funds. Show Answer Correct Answer: A) Most employers match a portion of your contributions. 6. When you deposit $ 50 in your account at First National Bank and a $ 100 check you have written on this account is cashed at Chemical Bank, then A) The assets of First National rise by $ 50. B) The assets of Chemical Bank rise by $ 50. C) The reserves at First National fall by $ 50. D) The liabilities at Chemical Bank rise by $ 50. Show Answer Correct Answer: C) The reserves at First National fall by $ 50. 7. In a stock exchange, what does a "stock broker" do? A) Buys and sells stocks on behalf of clients B) Issues stocks to companies C) Regulates the market D) Conducts financial audits A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 8. If a bank needs to acquire funds quickly to meet an unexpected deposit outflow, the bank could A) Borrow from another bank in the federal funds market. B) Buy U.S. Treasury bills. C) Increase loans. D) Buy corporate bonds. Show Answer Correct Answer: A) Borrow from another bank in the federal funds market. 9. What types of financial assets are traded in financial markets? A) Real estate, art, collectibles. B) Insurance policies, savings accounts. C) Stocks, bonds, derivatives, currencies, and commodities. D) Mutual funds, retirement plans. Show Answer Correct Answer: C) Stocks, bonds, derivatives, currencies, and commodities. 10. What is currency speculation? A) Investing in foreign stocks. B) Converting currencies for trade. C) Buying and selling currencies to profit from price changes. D) Buying currencies to hold long-term. Show Answer Correct Answer: C) Buying and selling currencies to profit from price changes. 11. Spreading out your investments to reduce risk is known as ..... A) Portfolio. B) Diversification. C) Par value. D) None of the above. Show Answer Correct Answer: B) Diversification. 12. Money that has no intrinsic value and is legal tender only because of government decree is called A) Credit. B) Currency. C) Fiat money. D) Representative money. Show Answer Correct Answer: C) Fiat money. 13. Why might an importer use the futures market? A) To speculate on the price of raw materials. B) To bypass currency regulations. C) To hedge against potential exchange rate fluctuations. D) To invest in foreign real estate. Show Answer Correct Answer: C) To hedge against potential exchange rate fluctuations. 14. What is the purpose of the Market Watch Window in the NEAT system? A) To display detailed charts and analysis. B) To view trading details of securities that are of interest to the user. C) To display the latest news related to stocks. D) To place buy and sell orders. Show Answer Correct Answer: B) To view trading details of securities that are of interest to the user. 15. Which of the following is an example of commodity money? A) RM50 note. B) Cowrie shells. C) Debit card. D) Token coins. Show Answer Correct Answer: B) Cowrie shells. 16. A market in which all financial assets can be sold to someone other than the original issuer A) Portfolio diversification. B) Primary market. C) Risk. D) Savings. E) Secondary market. Show Answer Correct Answer: E) Secondary market. 17. A ..... can make shares seem more affordable to small investors (even though the underlying value of the company has not changed). A) Dividend. B) Stock Split. C) Stock Appreciation. D) Stock Investment. Show Answer Correct Answer: B) Stock Split. 18. Lower interest rates encourage ..... A) Savers to save more. B) Borrowers to borrow more. C) All the above. D) None of the above. Show Answer Correct Answer: B) Borrowers to borrow more. 19. A characteristic of a purely competitive labor market would be A) Firms hiring different types of labor. B) Workers supplying labor under a union contract. C) Wage taker behavior by firms. D) Price maker behavior by firms. Show Answer Correct Answer: C) Wage taker behavior by firms. 20. It acts like a bank and keeps securities in electronic form on behalf of the investor, (a) Depository Participant (b) Depository (c) Stock exchange (d) None of the above A) A) Depository Participant. B) Depository. C) Stockexchange. D) None of above. Show Answer Correct Answer: B) Depository. 21. Which of the following is not a method of transferring capital in the economy? A) Direct transfer. B) Indirect transfer through investment banks. C) Indirect transfer through financial intermediaries. D) Government fiscal transfer. Show Answer Correct Answer: D) Government fiscal transfer. 22. In general, people put money in risky investments because A) They can take a tax deduction if they lose money. B) Such investments often earn the greatest profits. C) No other investments are available at the time. D) They receive bad advice from a financial analyst. Show Answer Correct Answer: B) Such investments often earn the greatest profits. 23. If a client buys shares worth Rs. 3, 30, 000 and sells shares worth Rs. 5, 70, 000 through a broker, then the maximum brokerage payable to the broker is ..... A) Rs. 22000. B) Rs. 25000. C) Rs.32500. D) Rs. 22500. E) Not Attempted. Show Answer Correct Answer: D) Rs. 22500. 24. What does the term 'liquidity' in financial markets refer to? A) The profit earned on investments. B) The ease with which an asset can be converted into cash. C) The interest rate on a loan. D) The risk involved in an investment. Show Answer Correct Answer: B) The ease with which an asset can be converted into cash. 25. An ideal Capital market is one A) Where finance is available at higher cost. B) Must provide insufficient information to investors. C) Where market operations are inconsistent. D) Which facilitates economic growth. Show Answer Correct Answer: D) Which facilitates economic growth. ← 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