This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 46 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 46 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not a regulatory function of SEBI? A) Calling for information. B) Controlling Insider Trading. C) Registration of market players. D) Regulation of intermediaries. Show Answer Correct Answer: B) Controlling Insider Trading. 2. Which of the statements about the concept of relative interest rates is NOT TRUE? A) Changes in relative interest rates affect investment in foreign securities. B) Investment influences the demand for currencies. C) Changes in relative interest rates affect the equilibrium exchange rate. D) Investment does not influence the supply of currencies. Show Answer Correct Answer: D) Investment does not influence the supply of currencies. 3. What does "volume" mean? A) The total market capitalization of a company. B) The price at which a stock is currently trading. C) The number of shares a company has issued. D) The number of shares of stock that have been traded during a trading period. Show Answer Correct Answer: D) The number of shares of stock that have been traded during a trading period. 4. Secondary market is also known as A) Primary market. B) New Issue Market. C) Financial Market. D) Stock Exchange. Show Answer Correct Answer: D) Stock Exchange. 5. How can one avoid falling victim to herd mentality? A) By only investing in high-yield assets. B) By always choosing the safest investment options. C) By making investment decisions based on sound, objective criteria. D) By investing only in what friends and family recommend. Show Answer Correct Answer: C) By making investment decisions based on sound, objective criteria. 6. Time deposit that states the amount of the deposit, the maturity, and the rate of interest being paid A) Certificate of deposit. B) 401K. C) Premium. D) None of the above. Show Answer Correct Answer: A) Certificate of deposit. 7. The capital market encourages the growth of: A) Discount houses. B) Merchant banking. C) Hire purchase companies. D) Microfinance banks. Show Answer Correct Answer: B) Merchant banking. 8. ABC Corporation creates and sells additional stock to the investment banker Pilipino Bank. Pilipino Bank then resells the issue to the Philippines public through its mutual funds. This transaction is an example of a(n) A) Money market transact. B) Asset transformation. C) Forward transaction. D) Primary market transaction. E) Foreign exchange transaction. Show Answer Correct Answer: D) Primary market transaction. 9. The term 'T' in settlement means: A) Transaction date. B) Transaction date. C) Trading price. D) Transfer day. Show Answer Correct Answer: A) Transaction date. 10. What happens when you buy a stock? A) You receive a cash dividend immediately. B) You are guaranteed a profit. C) You acquire ownership in a company. D) You can vote on company decisions. Show Answer Correct Answer: C) You acquire ownership in a company. 11. Which tends to be riskier, stocks or bonds? A) Stocks. B) Bonds. C) Neither are risky. D) Both are equally risky. Show Answer Correct Answer: A) Stocks. 12. Which of the following problems have been eliminated by Depositories? A) Reduction in the share transfer time to the buyer. B) Risk of stolen, fake, forged shares. C) Stamp duty on transfer of shares in dematerialized form. D) All of the above. E) Not Attempted. Show Answer Correct Answer: D) All of the above. 13. Calculate the value 4 years hence of a deposit of Rs. 1, 000 made today if the interest rate is 8% (compounded annually). A) Rs.1, 320. B) Rs.1, 040. C) Rs.1, 000. D) Rs.1, 360. E) Not Attempted. Show Answer Correct Answer: D) Rs.1, 360. 14. RK Enterprise Limited has sold an entire lot of 6, 00, 000 equity shares @ ₹ 9 each to People's Bank Pvt Ltd ..... The Bank inturn will offer the shares to general public for subscription @ ₹ 11 per share. Identify the method of floatation used here A) Private Placement. B) Offer through Prospectus. C) Offer for sale. D) Rights issue. Show Answer Correct Answer: C) Offer for sale. 15. According to the quantity theory of money, the value of money is determined by the supply of money, the rate at which money circulates, and: A) The level of taxation. B) The quantity of goods and services available. C) The foreign exchange rate. D) The population size. Show Answer Correct Answer: B) The quantity of goods and services available. 16. ..... refers to a period of time during which the stock market steadily rises. A) Maturity. B) Bull market. C) Financial asset. D) None of the above. Show Answer Correct Answer: B) Bull market. 17. In primary markets, first time issued shares to be publicly traded, in stock markets is considered as A) Traded offering. B) Public markets. C) Issuance offering. D) Initial public offering. Show Answer Correct Answer: D) Initial public offering. 18. Type of financial securities that mature in less than a year are classified as A) Money market securities. B) Capital market securities. C) Medium-term securities. D) Discounted securities. Show Answer Correct Answer: A) Money market securities. 19. The primary market deals with: A) The buying and selling of old securities. B) The buying and selling of new securities. C) Short-term government debt. D) Foreign exchange transactions. Show Answer Correct Answer: B) The buying and selling of new securities. 20. Hedging and speculative investments are the key characteristics of A) Commodity market. B) Share market. C) Money market. D) Both (a) and (b). Show Answer Correct Answer: D) Both (a) and (b). 21. Forex market primarily deals with: A) Government bonds. B) Equity shares. C) Currencies. D) Commodities. Show Answer Correct Answer: C) Currencies. 22. What are stocks that represent ownership shares in corporations called? A) Bond. B) Equities. C) Savings. D) Risk. Show Answer Correct Answer: B) Equities. 23. I have deposited 25, 000 USD in a bank, on a 6 month deposit at an annual rate of 5.25%, interest is paid by the bank every three months to the same deposit account. How much is worth my account at the end of the 6 month period? A) 26, 312.50. B) 25, 656.25. C) 25, 660.56. D) 25, 156.50. Show Answer Correct Answer: C) 25, 660.56. 24. From the following find out fund based financial service A) Merchant Banking. B) Factoring. C) Stock broking. D) Credit rating. Show Answer Correct Answer: B) Factoring. 25. Which financial market is characterized by the buying and selling of commodities such as gold, oil, and agricultural products? A) Equity market. B) Commodity market. C) Mortgage market. D) Options market. Show Answer Correct Answer: B) Commodity market. ← 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