This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 47 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following are short-term financial instruments? A) A share of Vinatex Danang JSC stock. B) A banker's acceptance. C) A treasury note with a maturity of 4 years. D) All of the above. Show Answer Correct Answer: B) A banker's acceptance. 2. Unsecured money market instrument A) Treasury bill. B) Commercial bill market. C) Certificate of deposit. D) Commercial paper. Show Answer Correct Answer: D) Commercial paper. 3. Which one of the following is a money market instrument? A) Unit of mutual fund. B) Debenture. C) Bond. D) Treasury bill. Show Answer Correct Answer: D) Treasury bill. 4. If a bank has $ 10 million of checkable deposits, a required reserve ratio of 10 percent, and it holds $ 2 million in reserves, then it will not have enough reserves to support a deposit outflow of A) $ 1.2 million. B) $ 1.1 million. C) $ 1 million. D) $ 900, 000. Show Answer Correct Answer: A) $ 1.2 million. 5. What are the 2 tasks of the SEC? A) 1. Ensure companies make truthful statements and 2. ensure companies treat investors honestly. B) 1. Ensure companies selling securities dont own stock in them or 2. work for them. C) 1. Ensure companies do not cheat on their taxes and 2. report all income. D) 1. Ensure companies follow standard accounting practice and 2. expense procedures. Show Answer Correct Answer: A) 1. Ensure companies make truthful statements and 2. ensure companies treat investors honestly. 6. A bonus share announced by a company: A) Increases the profit made by the company. B) Increases the EPS. C) Decreases the EPS. D) Reduces the free float of the company. Show Answer Correct Answer: C) Decreases the EPS. 7. The future value of a Rs.12, 000 investment, which gives an annual rate of return of 10% per annum, after two years would grow to ..... A) Rs. 14, 750. B) Rs. 14, 500. C) Rs. 12, 600. D) Rs. 14, 520. E) Not Attempted. Show Answer Correct Answer: D) Rs. 14, 520. 8. Stock exchange provides information to educate the people about investing in share markets, which function of stock exchange is referred to here? A) Provides liquidity. B) Pricing of securities. C) Economic growth. D) Spreading equity cult. Show Answer Correct Answer: D) Spreading equity cult. 9. Money can be described as follows, except: A) Medium of exchange. B) Unit of account. C) Store of value. D) Ownership of a company. Show Answer Correct Answer: D) Ownership of a company. 10. The main distinction between securities sold in the primary market and that in the secondary market is the: A) Profitability of the issuing corporation. B) Previous issuance of the securities. C) Price of the securities. D) Riskiness of the securities. Show Answer Correct Answer: B) Previous issuance of the securities. 11. The supply curve for labor in a purely competitive market is upwardly sloping because the A) Opportunity costs for workers rise. B) Marginal resource cost is constant. C) Wage rate paid to workers falls. D) Marginal revenue product rises. Show Answer Correct Answer: A) Opportunity costs for workers rise. 12. How do commercial banks primarily generate funds? A) By accepting deposits. B) Via international loans. C) Through equity investments. D) From government grants. Show Answer Correct Answer: A) By accepting deposits. 13. What is the vital function of financial markets? A) They regulate interest rates for loans. B) They provide insurance for investments. C) They create job opportunities for the unemployed. D) They transfer funds from savers to borrowers. Show Answer Correct Answer: D) They transfer funds from savers to borrowers. 14. An investor gives up Rs.1000 today and expects to consume Rs.1040 in the future. What if the price level in the economy goes up by 6%? To maintain the consumption of Rs.1040, the interest earned must be ..... per cent. A) 10.24. B) 8. C) 6. D) 9. Show Answer Correct Answer: A) 10.24. 15. What is the term for the risk that an investment may not be easily sold or converted to cash without a significant loss in value? A) Liquidity Risk. B) Market Risk. C) Credit Risk. D) Operational Risk. Show Answer Correct Answer: A) Liquidity Risk. 16. The individual firm that hires labor under purely competitive conditions faces a supply curve for labor that A) Is perfectly inelastic. B) Is of unitary elasticity. C) Is perfectly elastic. D) Slopes upward from left to right. Show Answer Correct Answer: C) Is perfectly elastic. 17. Present Commerce Minister of India A) Nirmala Sitharaman. B) Arun Jaitley. C) Piyush Goyal. D) Rajnadh Singh. Show Answer Correct Answer: C) Piyush Goyal. 18. What is a stock market? A) A stock market is where buyers and sellers trade shares of publicly listed companies. B) A stock market is a place for buying and selling real estate. C) A stock market is where fruits and vegetables are sold. D) A stock market is a type of supermarket. Show Answer Correct Answer: A) A stock market is where buyers and sellers trade shares of publicly listed companies. 19. Because of their ..... liquidity, ..... U.S. government securities are called secondary reserves. A) Low; short-term. B) Low; long-term. C) High; short-term. D) High; long-term. Show Answer Correct Answer: C) High; short-term. 20. Which of the following is not true about Exchange Traded Funds (ETF)? A) An ETF is like a Bank deposit. B) An ETF represents a basket of stocks that reflect an index such as the Nifty. C) An ETF's price changes throughout the day, fluctuating with supply and demand. D) By owning an ETF, you get the diversification of an index fund plus the flexibility of a stock. E) Not Attempted. Show Answer Correct Answer: A) An ETF is like a Bank deposit. 21. The questions to be asked are as follows:1. The rate at which the average price of goods and services in an economy increases over a period of time is called as ..... A) Compounding. B) Inflation. C) Discounting. D) None of the above. Show Answer Correct Answer: B) Inflation. 22. The amount of checkable deposits that banks are required by regulation to hold are the A) Excess reserves. B) Required reserves. C) Vault cash. D) Total reserves. Show Answer Correct Answer: B) Required reserves. 23. All of the following are basic components of bonds EXCEPT A) Maturity. B) Price to earnings. C) Par value. D) Coupon rate. Show Answer Correct Answer: B) Price to earnings. 24. Persons or institutions to whom money is owed A) Financial Institutions. B) Interest. C) Creditors. D) Collateral. Show Answer Correct Answer: C) Creditors. 25. Jelaskan mengapa investor mungkin tertarik membeli municipal bonds (obligasi daerah) dibandingkan obligasi lain? A) Karena municipal bonds menawarkan tingkat bunga lebih tinggi. B) Karena municipal bonds bebas dari pajak federal atas bunga yang diperoleh. C) Karena municipal bonds selalu dijamin oleh aset fisik suatu daerah. D) Karena municipal bonds diterbitkan oleh pemerintah lokal setempat. Show Answer Correct Answer: B) Karena municipal bonds bebas dari pajak federal atas bunga yang diperoleh. ← 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