This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 43 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Households are more likely to borrow than to lend. True or false. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 2. What theory argues that stocks are always priced about right and bargains are hard to find because they are so closely watched by so many investors? A) Efficient Market Hypothesis. B) Theory of Demand. C) Theory of Bull Markets. D) Wall Street Hypothesis. Show Answer Correct Answer: A) Efficient Market Hypothesis. 3. What is the difference between money markets and capital markets? A) Money markets deal with government securities, while capital markets deal with corporate stocks. B) Money markets deal with short-term borrowing, while capital markets deal with long-term borrowing. C) Money markets deal with equity financing, while capital markets deal with debt financing. D) Money markets deal with foreign exchange, while capital markets deal with commodities. Show Answer Correct Answer: B) Money markets deal with short-term borrowing, while capital markets deal with long-term borrowing. 4. A stock that reinvests its earnings in the business instead of paying regular dividends is called A) A growth stock. B) An income stock. C) Common stock. D) Preferred stock. Show Answer Correct Answer: A) A growth stock. 5. When I purchase ..... , I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors. A) Bonds. B) Bills. C) Notes. D) Stock. Show Answer Correct Answer: D) Stock. 6. What preferential treatment do preferred stockholders get? A) Preferred stockholders receive higher interest rates than bondholders. B) Preferred stockholders have voting rights equal to common stockholders. C) Preferred stockholders receive priority in dividend payments and asset distribution. D) Preferred stockholders are guaranteed a fixed return regardless of company performance. Show Answer Correct Answer: C) Preferred stockholders receive priority in dividend payments and asset distribution. 7. It is a method by which bank borrow from each other to be able to maintain the cash reserve ratio. A) Commercial bill. B) Commercial Papers. C) Call money. D) None of the above. Show Answer Correct Answer: C) Call money. 8. What are the effects of globalization on financial markets? A) Globalization reduces market efficiency and capital flows. B) Globalization eliminates all financial risks and volatility. C) Globalization enhances market efficiency and capital flows but increases exposure to global risks and volatility. D) Globalization has no impact on financial markets. Show Answer Correct Answer: C) Globalization enhances market efficiency and capital flows but increases exposure to global risks and volatility. 9. Name two types of financial markets. A) Insurance market. B) Commodities market. C) Stock market, Bond market. D) Real estate market. Show Answer Correct Answer: C) Stock market, Bond market. 10. The main purpose of derivatives market is: A) Currency exchange. B) Risk management and speculation. C) Retail payments. D) Venture capital funding. Show Answer Correct Answer: B) Risk management and speculation. 11. The tenor of dated securities in India can be up to A) 30 years. B) 40 years. C) 50 years. D) 100 years. Show Answer Correct Answer: A) 30 years. 12. The main purpose of the money market is to raise ..... A) Long-term finance. B) Short-term finance. C) Medium term finance. D) None of the above. Show Answer Correct Answer: B) Short-term finance. 13. What term fits this definition:Currency plus bank current deposits from the private non-bank sector A) Central bank. B) Financial innovation. C) N1. D) M1. E) M2. Show Answer Correct Answer: D) M1. 14. The expected rate of return of the money market is ..... A) Very high. B) Less. C) Zero. D) None of the above. Show Answer Correct Answer: B) Less. 15. Badan Perlindungan Investor dan Penjamin Integritas dari Pasar Sekuritas di Amerika Serikat disebut dengan ..... A) Federal Reserve System. B) Commodity Futures Trading Commission (CFTC). C) Financial Industry Regulatory Authority (FINRA). D) Securities and Exchange Commission (SEC). Show Answer Correct Answer: D) Securities and Exchange Commission (SEC). 16. The commission charged by stock brokers for their services is called: A) Jobber's turn. B) Interest. C) Brokerage. D) Dividend. Show Answer Correct Answer: C) Brokerage. 17. What is the highest Australia's cash price has ever been (%) A) 23. B) 17.5. C) 14. D) 19.8. E) 27.2. Show Answer Correct Answer: B) 17.5. 18. What is a corporate bond? A) A corporate bond is a financial instrument used for personal savings. B) A corporate bond is a loan given to individuals by a corporation. C) A corporate bond is a debt security issued by a corporation to raise capital. D) A corporate bond is a type of stock issued by a company. Show Answer Correct Answer: C) A corporate bond is a debt security issued by a corporation to raise capital. 19. The capital market is primarily concerned with: A) Long-term investment. B) Speculative trading. C) Short-term funds. D) Currency exchange. Show Answer Correct Answer: A) Long-term investment. 20. Finance companies raise funds in the money market by selling A) Commercial paper. B) Federal funds. C) Negotiable certificates of deposits. D) Eurodollars. Show Answer Correct Answer: A) Commercial paper. 21. Which of the following IS NOT a function of FINANCIAL MANAGEMENT? A) Maximizes shareholders' wealth. B) Raise capital to purchase assets. C) Determines the company's current share price. D) Acquire assets for operations. Show Answer Correct Answer: C) Determines the company's current share price. 22. Money supply in a country is controlled by: A) Commercial banks. B) The stock exchange. C) The central bank. D) Households. Show Answer Correct Answer: C) The central bank. 23. Insurance company A) Financial institution. B) Financial market. C) Financial instrument. D) None of the above. Show Answer Correct Answer: A) Financial institution. 24. Which of the following is included in M3 but NOT in M2? A) Savings in commercial banks. B) Fixed deposits in commercial banks. C) Savings in other financial institutions. D) Checkable deposits. Show Answer Correct Answer: C) Savings in other financial institutions. 25. How has the rise of cryptocurrencies impacted speculation? A) Decreased trading opportunities. B) Created new opportunities for profit. C) Made speculation less risky. D) Limited access to trading platforms. Show Answer Correct Answer: B) Created new opportunities for profit. ← 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