This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 42 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The monopsonistic labor market for nurses that would be found in a smaller city with two hospitals would lead to A) Lower starting salaries. B) Higher starting salaries. C) More employment opportunities. D) Greater demand for nursing services. Show Answer Correct Answer: A) Lower starting salaries. 2. How is a credit union different from a bank? A) Credit unions are non-profit institutions, while banks are profit-making firms. B) Credit unions are profit-making firms, while banks are non-profit institutions. C) Credit unions offer only credit cards, while banks offer savings accounts and loans. D) Credit unions charge compound interest, while banks charge simple interest. Show Answer Correct Answer: A) Credit unions are non-profit institutions, while banks are profit-making firms. 3. Defined contribution retirement account that is taken out of your paycheck before you pay any taxes on this income. (You do not pay taxes for the money you put into this account. INSTEAD you will have to pay taxes when you take the money out of the account) A) IRA. B) Roth IRA. C) 401K. D) Pension. Show Answer Correct Answer: C) 401K. 4. Financial instruments can be broadly classified into ..... and ..... instruments. A) Money, Capital. B) Debt, Equity. C) All the above. D) None of the above. Show Answer Correct Answer: B) Debt, Equity. 5. Which of the following best describes the relationship between Australian and global financial markets? A) Interdependent. B) Mutually exclusive. C) Separate. D) Synchronised. Show Answer Correct Answer: A) Interdependent. 6. Anything that sets the standard of value of goods and services acceptable to all parties involved in a transaction is called? A) The medium of economy. B) The medium of change. C) The medium of exchange. D) Money. Show Answer Correct Answer: C) The medium of exchange. 7. Which is the market where finance is provided against the guarantee of a reputed person in the financial circle A) Financial Mortgages Market. B) Financial Guarantees market. C) Debt market. D) Commodity market. Show Answer Correct Answer: B) Financial Guarantees market. 8. A formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury A) Emergency savings. B) Coverage. C) Claim. D) Employee benefits. Show Answer Correct Answer: C) Claim. 9. DICGC insure A) Just the principal on an account upto Rs. 500, 000. B) Accrued interest on account upto Rs. 500, 000. C) Both principal and accrued interest upto Rs. 500, 000. D) None of the above. Show Answer Correct Answer: C) Both principal and accrued interest upto Rs. 500, 000. 10. What is the primary function of merchant banking? A) Portfolio management. B) Underwriting and advisory. C) Marketing. D) Loan disbursement. Show Answer Correct Answer: B) Underwriting and advisory. 11. Which best describes token money? A) Higher metal value than face value. B) Used only for foreign exchange. C) Metallic value lower than face value. D) A form of commodity money. Show Answer Correct Answer: C) Metallic value lower than face value. 12. Nifty is the index of ..... A) BSE. B) NSE. C) OTCEI. D) CSE. Show Answer Correct Answer: B) NSE. 13. Seasoned equity offerings occur in the secondary market. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 14. Choose the only option below that is a stock exchange and the name of a stock index. A) Dow Jones Industrial Average. B) NYSE. C) NASDAQ. D) S&P 500. Show Answer Correct Answer: C) NASDAQ. 15. Benchmark Index for Blue Chip Fund is A) Sensex. B) Nifty. C) BSE 100. D) Large Cap Stocks. Show Answer Correct Answer: C) BSE 100. 16. When the NSEI was established A) 1990. B) 1992. C) 1998. D) 1997. Show Answer Correct Answer: B) 1992. 17. After the GST reform, India now effectively operates with: A) 3 slabs-5%, 18%, and 40%. B) 4 slabs-5%, 12%, 18%, 28%. C) Single flat rate. D) 6 slabs by category. Show Answer Correct Answer: A) 3 slabs-5%, 18%, and 40%. 18. The Union Cabinet approved the new GST rationalisation plan. Its main objective is to: A) Eliminate GST completely. B) Simplify tax slabs and improve compliance. C) Introduce more exemptions for corporates. D) Replace GST with VAT. Show Answer Correct Answer: B) Simplify tax slabs and improve compliance. 19. What is the function of the capital market? A) Providing short-term loans. B) Providing long-term capital. C) Short-term investments. D) Monetary control. Show Answer Correct Answer: B) Providing long-term capital. 20. What does the term 'premium' refer to in insurance? A) The total value of an insurance policy. B) The process of filing a claim. C) The duration of insurance coverage. D) The amount paid for insurance coverage. Show Answer Correct Answer: D) The amount paid for insurance coverage. 21. What is the main role of financial intermediaries? A) To issue currency and maintain reserves. B) To stabilize the value of the Ringgit. C) To supervise the banking system. D) To link lenders of money with potential borrowers. Show Answer Correct Answer: D) To link lenders of money with potential borrowers. 22. Which Indian stock exchange is oldest? A) BSE. B) NSE. C) Calcutta Stock Exchange. D) MCX. Show Answer Correct Answer: A) BSE. 23. Which of the following best describes systemic risk? A) Risk associated with individual investments. B) Risk of low consumer confidence. C) Risk of high interest rates. D) Risk of a breakdown in the entire financial system. Show Answer Correct Answer: D) Risk of a breakdown in the entire financial system. 24. The difference between the price the corporation gets and the public offering price is called the broker-dealer spread. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 25. What is the difference between debt markets and equity markets? A) Debt markets involve government securities, while equity markets involve corporate stocks. B) Debt markets involve short-term borrowing, while equity markets involve long-term borrowing. C) Debt markets involve fixed interest payments, while equity markets involve dividend payments. D) Debt markets involve foreign exchange, while equity markets involve commodities. Show Answer Correct Answer: C) Debt markets involve fixed interest payments, while equity markets involve dividend payments. ← 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