This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 38 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A marketplace where trading of securities including equities, bonds, currencies and derivatives occurs is a(n): A) Financial Market. B) Call Market. C) Foreign Exchange Market. D) Bear Market. Show Answer Correct Answer: A) Financial Market. 2. Choose the incorrect statement regarding causes for the poor repayment capacity of farmer A) Rapid fluctuations in prices of agricultural commodities. B) Using credit for productive purposes. C) Lack of adoption of improved technology. D) Poor management of limited farm resources. Show Answer Correct Answer: B) Using credit for productive purposes. 3. Dividends are paid by companies to its A) Debtors. B) Employees. C) Shareholders. D) None of the above. Show Answer Correct Answer: C) Shareholders. 4. Commercial transactions in the spot market are often completed electronically, with banks or other financial institutions serving as intermediaries. The exchange rate at the time determines the amount of funds necessary for the transaction. A) Spot Market Decentralize. B) Spot Market Structure. C) Spot Market Remittance. D) Spot Market Infrastructure. Show Answer Correct Answer: B) Spot Market Structure. 5. Financial institutions are also known as ..... A) Financial organisation. B) Financial system. C) Financial intermediaries. D) All of the above. Show Answer Correct Answer: C) Financial intermediaries. 6. Conditions that likely contributed to a credit crunch during the global financial crisis include A) Capital shortfalls caused in part by falling real estate prices. B) Regulated hikes in bank capital requirements. C) Falling interest rates that raised interest rate risk, causing banks to choose to hold more capital. D) Increases in reserve requirements. Show Answer Correct Answer: A) Capital shortfalls caused in part by falling real estate prices. 7. If the size of an asset increases on a balance sheet, then: A) The size of another asset must decrease. B) The size of something on the liability side must decrease. C) The size of something on the liability side must increase. D) Either a. or c. E) Either a. or b. Show Answer Correct Answer: D) Either a. or c. 8. The allocation function is performed by A) Financial market. B) Capital market. C) Money market. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. The integration of Indian financial markets with global markets primarily facilitates: A) Localized business expansion. B) Isolated economic growth. C) Cross-border capital flow. D) Domestic-only investment. Show Answer Correct Answer: C) Cross-border capital flow. 10. Which ones of these is NOT a financial institution A) Reserve Bank. B) Lehman Brothers. C) Johnson & Johnson. D) Money3 Campbelltown. Show Answer Correct Answer: C) Johnson & Johnson. 11. Which institution primarily operates in the capital market? A) Discount House. B) Insurance companies. C) Hire-purchase companies. D) Commercial banks (for short-term focus). Show Answer Correct Answer: B) Insurance companies. 12. The index that shows how certain stocks have traded every business day since 1896 is called A) NYSE. B) Nasdaq. C) S & P 500. D) Dow Jones. Show Answer Correct Answer: D) Dow Jones. 13. Kapan New York Stock Exchange (NYSE) pertama kali mulai melakukan perdagangan? A) 1802. B) 1792. C) 1902. D) 1850. Show Answer Correct Answer: B) 1792. 14. What is the main function of a stock exchange? A) To allow governments to borrow money. B) To facilitate the trading of equity and debt securities. C) To provide insurance for traders. D) To provide a platform for commodity trading. Show Answer Correct Answer: B) To facilitate the trading of equity and debt securities. 15. The ability to express the value of goods and services in different amounts of a currency is money's function as ..... A) A medium of exchange. B) A unit of account. C) A store of value. D) None of the above. Show Answer Correct Answer: B) A unit of account. 16. Which of the following is not true of Demat account? A) One is not restricted to having account with only one DP. B) One does not need to keep any minimum balance of securities in a Demat account with a DP. C) One cannot open more than one account with the same DP. D) One can dematerialise and hold investments such as debt instruments, mutual fund units, government securities etc. in a single demat account. E) Not Attempted. Show Answer Correct Answer: C) One cannot open more than one account with the same DP. 17. A market for short term borrowing and lending, typically with maturities of one year or less. A) Debt Markets. B) Capital Markets. C) Money Market. D) All of the above. Show Answer Correct Answer: C) Money Market. 18. Which of these is a money market instrument? A) Equity shares. B) Treasury Bills. C) Preference shares. D) Debentures. Show Answer Correct Answer: B) Treasury Bills. 19. Large-denomination CDs are ..... , so that like a bond they can be resold in a ..... market before they mature. A) Nonnegotiable; secondary. B) Nonnegotiable; primary. C) Negotiable; secondary. D) Negotiable; primary. Show Answer Correct Answer: C) Negotiable; secondary. 20. What is the primary purpose of the Order/Trade Window? A) To display market news. B) To modify or cancel existing orders. C) To input buy/sell orders. D) To analyze price movements. Show Answer Correct Answer: C) To input buy/sell orders. 21. Compared to money market securities, capital market securities have A) More liquidity. B) Longer maturity. C) Lower yields. D) Less risk. Show Answer Correct Answer: B) Longer maturity. 22. Debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. A) Stock. B) Bond. C) Net Worth. D) None of the above. Show Answer Correct Answer: B) Bond. 23. What is the relationship between bond prices and interest rates? A) Direct. B) Inverse. C) No relationship. D) Random. Show Answer Correct Answer: B) Inverse. 24. All of the following are low-risk investments EXCEPT A) Junk (high-yield) bonds. B) Treasury bonds. C) Municipal bonds. D) Savings bonds. Show Answer Correct Answer: A) Junk (high-yield) bonds. 25. What is a bond? A) A bond is a type of stock that represents ownership in a company. B) A bond is a financial instrument that guarantees a fixed return. C) A bond is a contract that allows investors to buy real estate. D) A bond is a debt security that represents a loan from an investor to a borrower. Show Answer Correct Answer: D) A bond is a debt security that represents a loan from an investor to a borrower. ← 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