This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 41 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Aftermarket is another name of: A) The secondary market. B) The debt market. C) The securities market. D) The market. Show Answer Correct Answer: A) The secondary market. 2. SEBI has authority over: A) Insurance Companies. B) Listed Companies. C) Banking Institutions. D) None of the above. Show Answer Correct Answer: B) Listed Companies. 3. Perdagangan saham di pasar OTC terjadi melalui jaringan telekomunikasi. Salah satu keunggulan sistem ini dibandingkan dengan bursa tradisional adalah: A) Lebih banyak saham pemerintah yang diperdagangkan. B) Dapat memperdagangkan saham yang tidak terdaftar di bursa. C) Proses lebih lambat karena hanya tunai. D) Lebih sedikit saham yang diperdagangkan. Show Answer Correct Answer: B) Dapat memperdagangkan saham yang tidak terdaftar di bursa. 4. ..... is a market for converting the currency of one country into another country. A) The capital market. B) The foreign exchange market. C) The financial market. D) None of the above. Show Answer Correct Answer: B) The foreign exchange market. 5. Because checking accounts are ..... liquid for the depositor than savings accounts, they earn ..... interest rates. A) Less; higher. B) Less; lower. C) More; higher. D) More; lower. Show Answer Correct Answer: D) More; lower. 6. Federal funds are not sold by banks to other banks A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 7. What is the key difference between a stock market and a bond market? A) Stocks represent ownership in a company, while bonds are debt obligations. B) Stocks are short-term, and bonds are long-term. C) Stocks are traded in the money market, and bonds are traded in the capital market. D) Stocks are only traded by institutional investors, while bonds are traded by retail investors. Show Answer Correct Answer: A) Stocks represent ownership in a company, while bonds are debt obligations. 8. Money market instrument issued by the RBI on behalf of Central Govt is A) Commercial paper. B) Treasury bill. C) Call money. D) Commercial bill. Show Answer Correct Answer: B) Treasury bill. 9. Assume that M/s ABC Limited, a retail company is trading at a Price to sales multiple of 4. After a few quarters a news report appear in a leading financial paper- "M/s ABC Limited gets re-rated." The most likely meaning of the headline is: A) The profit of the company has increased. B) The Price to sales multiple of the company exceeds 4. C) The losses that the company was making has decreased. D) The footfall in company's store has increased. Show Answer Correct Answer: B) The Price to sales multiple of the company exceeds 4. 10. What does an ETF stand for? A) Equity Transfer Fund. B) Exchange-Traded Fund. C) Efficient Trade Fund. D) Equity Trust Fund. Show Answer Correct Answer: B) Exchange-Traded Fund. 11. How do financial institutions impact the economy? A) Financial institutions only manage personal savings and do not influence the economy. B) They primarily focus on consumer loans without affecting investments. C) Financial institutions impact the economy by facilitating capital flow, supporting investment, managing risks, and promoting economic growth. D) Financial institutions hinder economic growth by restricting capital access. Show Answer Correct Answer: C) Financial institutions impact the economy by facilitating capital flow, supporting investment, managing risks, and promoting economic growth. 12. Which of the following best describes a money market? A) A market for long-term equity and debt instruments. B) A market for short-term debt instruments, typically with low risk. C) A market for buying and selling currencies. D) A market for complex financial contracts like options and futures. Show Answer Correct Answer: B) A market for short-term debt instruments, typically with low risk. 13. The equity market is ..... A) A financial market where the trading of debt instruments takes place. B) A financial market in which shares are issued and traded, either through exchanges or over-the-counter markets. C) A financial market where buyers and sellers of securities(or their agents or brokers) meet in one central location to conduct trades. D) Is a financial market in which long-term debt and equity instruments are traded. Show Answer Correct Answer: B) A financial market in which shares are issued and traded, either through exchanges or over-the-counter markets. 14. Which of the following is NOT a financial institution listed as operating in the capital market? A) Development banks. B) Insurance companies. C) Discount Houses. D) Mortgage banks. Show Answer Correct Answer: C) Discount Houses. 15. Mr Fang is the preference shareholder of Da Ming Bhd.Which of the following descriptions regarding Mr Fang is true? A) A Mr Fang is a creditor of the company. B) B Mr Fang enjoys a fixed dividend. C) C Mr Fang can participate in the election of directors. D) D Mr Fang will be the last to receive share capital if the company goes into liquidation. Show Answer Correct Answer: B) B Mr Fang enjoys a fixed dividend. 16. What does the word speculation/buying on margin mean? A) Investing in a type of stock that the buyer knows little about. B) Making small, low-risk investments with surplus money. C) Making high-risk investments with borrowed money. D) Investing low-risk stocks with illegal money. Show Answer Correct Answer: C) Making high-risk investments with borrowed money. 17. What was the primary characteristic of the Malaysian financial system pre-independence? A) Focus on financial inclusion. B) Dominated by foreign institutions. C) Rapid expansion of domestic banks. D) Adoption of digital technologies. Show Answer Correct Answer: B) Dominated by foreign institutions. 18. What does CAGR help calculate? A) Tax savings on mutual funds. B) Compounding interest monthly. C) Lump sum value of SIPs. D) Average annual growth rate over time. Show Answer Correct Answer: D) Average annual growth rate over time. 19. What account is a good idea if you are in a lower tax bracket than you will be at retirement? A) Traditional IRA. B) Roth IRA. C) All the above. D) None of the above. Show Answer Correct Answer: B) Roth IRA. 20. The 'New York Stock Exchange' is an example of A) Capital markets. B) Money markets. C) Liquid markets. D) Short-term markets. Show Answer Correct Answer: A) Capital markets. 21. Define Financial Intermediaries A) The market for existing government securities. B) An organisation that lends money to households and firms but has taken it from other other households or firms. C) The lending of money to another party, involves temporary loan. D) Development of new financial products and methods. Show Answer Correct Answer: B) An organisation that lends money to households and firms but has taken it from other other households or firms. 22. In which type of financial markets are fresh shares issued and sold? A) Money market. B) Capital market. C) Primary market. D) Secondary market. Show Answer Correct Answer: C) Primary market. 23. Siapa yang biasanya menulis polis asuransi untuk mendukung penerbitan obligasi? A) Bank kecil. B) Perusahaan asuransi besar dan terkenal. C) Pemerintah daerah. D) Investor individu. Show Answer Correct Answer: B) Perusahaan asuransi besar dan terkenal. 24. Which type of trader focuses on short-term price movements within a single trading day? A) Options traders. B) Swing traders. C) Position traders. D) Day traders. Show Answer Correct Answer: D) Day traders. 25. This is also known as a financial instrument. A) Bond. B) Debt. C) Security. D) Interest. Show Answer Correct Answer: C) Security. ← 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