This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 36 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. SEBI is a regulator of A) Capital market. B) Money Market. C) Commodity market. D) Overseas Market. Show Answer Correct Answer: A) Capital market. 2. What is an investment objective? A) The final destination of an investor's money. B) A financial goal used to determine whether investments are appropriate. C) A method of investing that involves cool, unemotional appraisal of stocks. D) A formula used to calculate simple versus compound interest. Show Answer Correct Answer: B) A financial goal used to determine whether investments are appropriate. 3. What is the name of the financial services company that was demerged from Reliance and listed separately? A) Reliance Finance Ltd. B) Jio Financial Services. C) Reliance Capital. D) Reliance Banking & Trust. Show Answer Correct Answer: B) Jio Financial Services. 4. What is the role of a broker in a stock exchange? A) A broker manages a company's financial assets directly. B) A broker facilitates the buying and selling of stocks on behalf of clients. C) A broker is responsible for setting stock prices. D) A broker only provides financial advice to clients. Show Answer Correct Answer: B) A broker facilitates the buying and selling of stocks on behalf of clients. 5. Period of time after which time deposits will pay a stated rate of interest A) Savings. B) Interest. C) Maturity. D) None of the above. Show Answer Correct Answer: C) Maturity. 6. Select statement which is not true from below in regards of bonus shares A) The relative ownership of shareholders does not change. B) The price of each shares in the stock market falls. C) The Book Value of each shares goes up. D) The amount of shares issued goes up. Show Answer Correct Answer: C) The Book Value of each shares goes up. 7. NASDAQ (best answer) A) Exchange. B) Stock. C) Index. D) Index & Exchange. Show Answer Correct Answer: D) Index & Exchange. 8. What role do investment banks play in mergers and acquisitions? A) They help companies raise capital. B) They provide loans to individuals. C) They offer insurance products. D) They conduct market research. Show Answer Correct Answer: A) They help companies raise capital. 9. Which is the most common type of depository institution? A) Credit unions. B) Investment banks. C) Savings and loan associations. D) Commercial banks. Show Answer Correct Answer: D) Commercial banks. 10. A high credit rating implies ..... credit risk A) High. B) Low. C) All the above. D) None of the above. Show Answer Correct Answer: B) Low. 11. On this day, the exchange will deliver the share or make payment to the other broker A) Pay-in day. B) Pay-out day. C) Transaction day. D) None of the above. Show Answer Correct Answer: B) Pay-out day. 12. Which of the following instruments is typically traded in the capital market? A) Treasury Bills. B) Call Money. C) Corporate Bonds. D) Commercial Paper. Show Answer Correct Answer: C) Corporate Bonds. 13. What is a key characteristic of financial assets traded in the money market? A) They offer a fixed interest rate for the term of the asset. B) They can only be traded internationally. C) They are insured by the government against loss. D) They are typically short-term with a maturity of a year or less. Show Answer Correct Answer: D) They are typically short-term with a maturity of a year or less. 14. Primary market is associated with ..... issues. A) Old. B) New. C) Old and New. D) Very Old. Show Answer Correct Answer: B) New. 15. The saving of money by an individual ..... A) Benefits the whole economy. B) Deprives others of money to invest. C) Lowers the standard of living. D) Benefits the saver only. Show Answer Correct Answer: A) Benefits the whole economy. 16. An agreement to buy or sell at a specific date in the future at a predetermined price is known as what? A) Bond. B) Capital market. C) Equities. D) Futures contract. Show Answer Correct Answer: D) Futures contract. 17. Which statement about M1 is correct? A) It includes fixed deposits. B) It includes chequing accounts. C) It includes government bonds. D) It excludes currency. Show Answer Correct Answer: B) It includes chequing accounts. 18. A borrower who takes out a loan usually has better information about the potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is called A) Noncollateralized risk. B) Moral hazard. C) Adverse selection. D) Asymmetric information. Show Answer Correct Answer: D) Asymmetric information. 19. Which of the following is a characteristic of a 'Money Market'? A) It deals with long-term funds. B) It involves transactions of securities with a maturity period of less than one year. C) It is less liquid than the capital market. D) It deals with the trade of foreign currencies. Show Answer Correct Answer: B) It involves transactions of securities with a maturity period of less than one year. 20. Primary market is also called: A) New issue market. B) New issue market. C) Secondary market. D) Derivatives market. Show Answer Correct Answer: A) New issue market. 21. All of the following are examples of financial intermediaries EXCEPT A) A credit union. B) A finance company. C) A stock certificate. D) A life insurance company. Show Answer Correct Answer: C) A stock certificate. 22. RBI is: A) Apex monetary authority of India. B) Regulator of banking system. C) Issues currency notes. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. BSE was established in ..... and was ..... first stock exchange. A) 1875, World's. B) 1875, Asia's. C) 1945, World;s. D) 1945, Asia's. Show Answer Correct Answer: B) 1875, Asia's. 24. The money market primarily deals with: A) Shares and debentures. B) Long-term government bonds. C) Short-term funds, usually less than one year. D) Foreign direct investment. Show Answer Correct Answer: C) Short-term funds, usually less than one year. 25. Payments made to shareholders of a company's stock are called? A) Coupon. B) Interest. C) Dividend. D) None of the above. Show Answer Correct Answer: C) Dividend. ← 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