This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 37 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 37 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The "lemons problem" is a term used to describe the A) Free-rider problem. B) Principal-agent problem. C) Adverse selection problem. D) Moral hazard problem. E) Both A and B of the above. Show Answer Correct Answer: C) Adverse selection problem. 2. Which of the following is a fund-based financial service? A) Advisory services. B) Leasing. C) Merchant banking. D) Advisory services. Show Answer Correct Answer: B) Leasing. 3. While the SEC and FINRA both share the role of protecting investors, key differences between the two include: A) The SEC regulates Security Markets and FINRA regulates Brokers and firms. B) The SEC regulates public corporations only, FINRA deals solely with private companies. C) The SEC is a for-profit private organization and FINRA is a non-profit government agency. D) All of the Answers are correct. Show Answer Correct Answer: A) The SEC regulates Security Markets and FINRA regulates Brokers and firms. 4. The physical site where shares are purchased and sold face-to-face on the trading floor. A) Stock Exchange. B) Future Contract. C) Puttable. D) Callable. Show Answer Correct Answer: A) Stock Exchange. 5. A five-year security was purchased two years ago by an investor who plans to resell it. The investor will sell the security r in the: A) Primary market. B) Secondary market. C) Deficit market. D) Surplus market. Show Answer Correct Answer: B) Secondary market. 6. How many times a security can be sold in a secondary market? A) Only one time. B) Two time. C) Three times. D) Multiple times. Show Answer Correct Answer: D) Multiple times. 7. What is owned by stockholders and operated for profit? A) Commercial Bank. B) Mutual Savings Bank. C) Credit Union. D) Savings and loan association. Show Answer Correct Answer: A) Commercial Bank. 8. What is an Index? A) A basket of shares. B) An indicator of market movement. C) An indicator of the economic conditions of the country. D) All of the above. E) Not Attempted. Show Answer Correct Answer: D) All of the above. 9. Yang tidak termasuk komponen pada pasar keuangan internasional adalah ..... A) Bisnis internasional. B) Ekuitas internasional. C) Obligasi internasional. D) Pasar eurocurrency. Show Answer Correct Answer: A) Bisnis internasional. 10. Which of the following is NOT a component of the Fisher effect? A) Real GDP. B) Real risk-free rate. C) Expected inflation. D) Nominal risk-free rate. Show Answer Correct Answer: A) Real GDP. 11. Located at Times Square, this exchange is electronic and trades mostly technology-related stocks. A) Over the counter. B) NYSE. C) DJIA. D) NASDAQ. Show Answer Correct Answer: D) NASDAQ. 12. Which type of short term debt instruments are issued by the Ministry of Finance of Bulgaria: A) Treasury bonds. B) Treasury bills. C) Treasury notes. D) Commercial paper. Show Answer Correct Answer: B) Treasury bills. 13. Which of the following regulators would be responsible for providing liquidity to banks in the event of a financial crisis? A) APRA. B) RBA. C) CFR. D) ASIC. Show Answer Correct Answer: B) RBA. 14. Bank ..... is/are listed on the liability side of the bank's balance sheet. A) Reserves. B) Capital. C) Securities. D) Cash items. Show Answer Correct Answer: B) Capital. 15. Which of these name expansions is right? A) PAYTM-Pay Through Mobile. B) NPCI-National Payments Corporation of India. C) BHIM-Bharat Interface for Money. D) CRED-Credit Redemption Enabled Dashboard. Show Answer Correct Answer: D) CRED-Credit Redemption Enabled Dashboard. 16. A banker's acceptance is A) A method to help importers evaluate the creditworthiness of exporters. B) An add-on instrument. C) For greater than one year maturity. D) A time draft drawn on the exporter's bank. E) A liability of the importer and the importer's bank. Show Answer Correct Answer: E) A liability of the importer and the importer's bank. 17. Financial market facilitates business firms A) To rise funds. B) To recruit workers. C) To make more sales. D) To minimize fund requirement. Show Answer Correct Answer: A) To rise funds. 18. They serve as intermediaries in the foreign exchange market by exchanging currencies desired by MNCs or individuals and include large commercial banks such as Citigroup (United States), JPMorgan Chase & Co. (United States), Barclays (United Kingdom), UBS (Switzerland), and Deutsche Bank (Germany). A) Foreign exchange dealers. B) Foreign exchange cartels. C) Foreign exchange remittance. D) Foreign exchange despository. Show Answer Correct Answer: A) Foreign exchange dealers. 19. Net profit after taxes per dollar of assets is a basic measure of bank profitability called A) Return on assets. B) Return on capital. C) Return on equity. D) Return on investment. Show Answer Correct Answer: A) Return on assets. 20. Which of the following factors does NOT directly affect financial markets? A) Interest rates. B) Inflation rate. C) Literacy rate. D) Government policies. Show Answer Correct Answer: C) Literacy rate. 21. The market for buying and selling of commercial Bills of Exchange is known as a ..... A) Commercial Paper Market. B) Treasury Bill Market. C) Commercial Bill Market. D) Capital Market. Show Answer Correct Answer: C) Commercial Bill Market. 22. Which is term of where buyers and sellers of securities meet in one central location to conduct trades? A) Over the counter. B) Exchange. C) Transactions. D) Barter system. Show Answer Correct Answer: B) Exchange. 23. Most savings institutions in the United States A) Are not insured. B) Insure up to $ 100, 000. C) Charge a fee for insurance. D) Insure deposits over $ 1 millon. Show Answer Correct Answer: B) Insure up to $ 100, 000. 24. The following statements are true regarding commercial banks EXCEPT A) Are nonprofit organizations. B) The most dominant depository institution. C) Offer a wide variety of deposit accounts. D) Serve both the public and the private sector. Show Answer Correct Answer: A) Are nonprofit organizations. 25. What is the name of BSE index? A) BSE index. B) Nifty 50. C) BSE 30. D) Sensex. Show Answer Correct Answer: D) Sensex. ← 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