This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 44 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 44 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The market for short term financial assets/ instruments, that are close substitutes of money, is called: A) Money Market. B) Capital Market. C) Forex Market. D) Financial Market. Show Answer Correct Answer: A) Money Market. 2. Financial market facilities business firms A) To rise funds. B) To recruit workers. C) To make more sales. D) To minimize funds requirement. Show Answer Correct Answer: A) To rise funds. 3. What type of financial market is primarily used for short-term borrowing and lending, typically with instruments like Treasury bills? A) Derivatives Market. B) Foreign exchange market. C) Capital market. D) Money market. Show Answer Correct Answer: D) Money market. 4. Which of the following best describes the unit of account function of money? A) It is used to compare the value of goods and services. B) It is used to facilitate international trade. C) It is used to store wealth for the future. D) It is used to pay taxes to the government. Show Answer Correct Answer: A) It is used to compare the value of goods and services. 5. How much do you feel bored in the class? A) Very much. B) Not at all. C) 10-30%. D) More than 50%. Show Answer Correct Answer: B) Not at all. 6. What is the index of 30 representative stocks used to monitor changes in the overall stock market A) New York Stock Exchange. B) Euronext. C) Bear Market. D) Dow Jones Industrial Averages. Show Answer Correct Answer: D) Dow Jones Industrial Averages. 7. Trustworthiness of the borrower falls under ..... A) Principle of productivity. B) Principle of payment. C) Principle of personality. D) Principle of protection. Show Answer Correct Answer: C) Principle of personality. 8. Ram Enterprise wishes to invest ₹ 1, 10, 000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund? A) 6. B) 7. C) 4. D) 2. Show Answer Correct Answer: C) 4. 9. Which of the following is a characteristic of municipal bonds? A) They are always taxable. B) They are issued by corporations. C) They often provide tax-exempt interest. D) They have a higher risk of default. Show Answer Correct Answer: C) They often provide tax-exempt interest. 10. Which of these financial institutions operates primarily in the money market? A) Development Bank. B) Stock Exchange. C) Commercial Bank. D) Mortgage Bank. Show Answer Correct Answer: C) Commercial Bank. 11. What is the function of the stock exchange? A) To issue new securities. B) To regulate government policies. C) To provide a platform for buying and selling of securities. D) To control inflation rates. Show Answer Correct Answer: C) To provide a platform for buying and selling of securities. 12. If a client buys shares worth Rs. 2, 25, 000 and sells shares worth Rs. 5, 75, 000 through a broker, then the maximum brokerage payable to the broker is ..... A) Rs. 21000. B) Rs. 25000. C) Rs. 20000. D) Rs. 22000. E) Not Attempted. Show Answer Correct Answer: C) Rs. 20000. 13. The feature that allows the issuing firms to retire the bonds before the maturity by paying a prescribed price is called A) Callability (call option). B) Putability (put option). C) Convertibiliy. D) Redemption. Show Answer Correct Answer: A) Callability (call option). 14. The goals of bank asset management include A) Maximizing risk. B) Minimizing liquidity. C) Lending at high interest rates regardless of risk. D) Purchasing securities with high returns and low risk. Show Answer Correct Answer: D) Purchasing securities with high returns and low risk. 15. An inefficient market means that stock prices adjust quickly to new public information. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 16. How could the RBA tighten the stance of monetary policy to reduce inflation? A) Use OMO to purchase second hand government securities to reduce IRs. B) Use OMO to purchase second hand government securities to increase IRs. C) Use OMO to sell new government securities to increase IRs. D) Use OMO to sell second hand government securities to reduce IRs. Show Answer Correct Answer: C) Use OMO to sell new government securities to increase IRs. 17. Competition between financial institutions depends on the following criteria EXCEPT A) Growth. B) Interest rate. C) Degree of risk. D) Profitability. Show Answer Correct Answer: B) Interest rate. 18. ..... are short-term loans in which Treasury bills serve as collateral. A) Repurchase agreements. B) Negotiable certificates of deposit. C) Federal funds. D) U.S. government agency securities. Show Answer Correct Answer: A) Repurchase agreements. 19. What is the major focus of Savings and Loan associations? A) Accepting deposits and using them to make mortgage loans. B) Offering checking accounts with high interest rates. C) Providing personal loans without collateral. D) Investing in stocks and bonds. Show Answer Correct Answer: A) Accepting deposits and using them to make mortgage loans. 20. A corporation needing funds sells securities to investors in the secondary market. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 21. In primary markets, property of shares which made it easy to sell newly issued security is considered as A) Increased liquidity. B) Decreased liquidity. C) Money Flow. D) Large funds. Show Answer Correct Answer: A) Increased liquidity. 22. Which type of financial asset is typically traded in money markets? A) Stocks with a maturity of more than five years. B) Real estate properties. C) Financial assets with a maturity of a year or less. D) Long-term government bonds. Show Answer Correct Answer: C) Financial assets with a maturity of a year or less. 23. What characteristic of money allows individuals to save wealth for future use? A) Medium of Exchange. B) Unit of Account. C) Store of Value. D) Standard of Deferred Payment. Show Answer Correct Answer: C) Store of Value. 24. What does the Ticker Window primarily show? A) Latest trades and price movements. B) Real-time trade prices for selected securities. C) Historical data on stock prices. D) Trading volumes for all securities. Show Answer Correct Answer: B) Real-time trade prices for selected securities. 25. Financial derivatives exclude A) FORWARDS. B) FUTURES. C) SWAPS. D) SHARES. Show Answer Correct Answer: D) SHARES. ← 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