This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 49 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 49 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main purpose of a capital market? A) To provide loans to individuals only. B) To allocate financial resources efficiently. C) To manage government budgets. D) To regulate currency exchange rates. Show Answer Correct Answer: B) To allocate financial resources efficiently. 2. The BEST way to improve your credit rating is to A) Never get a credit card. B) Never borrow money from a bank. C) Never forget to pay your bills on time. D) Never accumulate assets and collateral. Show Answer Correct Answer: C) Never forget to pay your bills on time. 3. The principle amount (face value) A) Coupon Rate. B) Maturity. C) Par Value. D) Yield. Show Answer Correct Answer: C) Par Value. 4. Rosa deposited $ 500 in a saving account with a simple interest rate of 3% per year. If she made no other deposit or withdrawals, how much interest had she earned at the end of 2 years? A) $ 1.50. B) $ 15.00. C) $ 3.00. D) $ 30.00. Show Answer Correct Answer: B) $ 15.00. 5. Which would increase the demand for labor? A) A decrease in the wages of that type of labor. B) An increase in the prices of the resources that are substitutes for that type of labor. C) An increase in the prices of the resources that are complements to that type of labor. D) A decrease in the demand for the products produced by that type of labor. Show Answer Correct Answer: C) An increase in the prices of the resources that are complements to that type of labor. 6. How often does the forex market operate? A) 24/7. B) 24/5. C) 12/5. D) 12/7. Show Answer Correct Answer: B) 24/5. 7. Instruments traded in Capital Markets are ..... A) Bonds. B) Debentures. C) Equity Shares and Preference Shares. D) All of these. Show Answer Correct Answer: D) All of these. 8. The organisations/institutions that provide long term funds. A) Capital market. B) Money market. C) Primary market. D) Secondary market. Show Answer Correct Answer: A) Capital market. 9. Apa yang dimaksud dengan hak residual claimant bagi pemegang saham? A) Hak untuk menerima dividen tetap setiap tahun. B) Hak untuk mengklaim semua aset dan pendapatan yang tersisa setelah semua klaim lain dipenuhi. C) Hak untuk menjual saham kapan saja tanpa batasan. D) Hak untuk mengelola perusahaan secara langsung. Show Answer Correct Answer: B) Hak untuk mengklaim semua aset dan pendapatan yang tersisa setelah semua klaim lain dipenuhi. 10. Which factor is described as a continual increase in the price level of goods and services? A) Default risk. B) Liquidity risk. C) Inflation. D) Special provisions. Show Answer Correct Answer: C) Inflation. 11. Who controls the capital market of India? A) SEBI. B) RBI. C) IRDA. D) NABARD. Show Answer Correct Answer: A) SEBI. 12. How does a central bank's increase in the overnight policy rate affect the mortgage market? A) It generally decreases mortgage rates. B) It has no impact on mortgage rates. C) It increases the cost of borrowing, raising mortgage rates. D) It leads to higher demand for mortgage-backed securities. Show Answer Correct Answer: C) It increases the cost of borrowing, raising mortgage rates. 13. Which of the following best describes the purpose of FII? A) Long-term investment in companies. B) Short-term profit-seeking through market investments. C) Regulation of local businesses. D) Direct management of companies. Show Answer Correct Answer: B) Short-term profit-seeking through market investments. 14. The dollars that become available for investors to use when others refrain from consuming A) Portfolio diversification. B) Primary market. C) Risk. D) Savings. E) Secondary market. Show Answer Correct Answer: D) Savings. 15. This term refers to facilities through which debt and equity are raised A) Money market. B) Capital market. C) Treasury market. D) Call market. Show Answer Correct Answer: B) Capital market. 16. Which of the following represents ownership in a company? A) Debt securities. B) Equity securities. C) Futures contracts. D) Options. Show Answer Correct Answer: B) Equity securities. 17. What is the Securities & Exchange Commission (SEC)? A) An independent agency that advises the government on economic policies. B) A government agency that regulates financial markets & investigates securities fraud. C) A privately owned investment corporation that sells bonds & other investments. D) A legislative committee that ensures Congressmen are making ethical investment decisions. Show Answer Correct Answer: B) A government agency that regulates financial markets & investigates securities fraud. 18. From Mar 2020 to April 5$^{th}$ 2020 the Indian stock market is entering in A) Bear Phase. B) Bull Phase. C) All the above. D) None of the above. Show Answer Correct Answer: A) Bear Phase. 19. A company owned by families or a small number of investors and do not issue stock to the public. A) Public company. B) Industry. C) Private company. D) Portfolio. Show Answer Correct Answer: C) Private company. 20. A ..... generally declines more during a recession and shows more growth during an expansion than other stocks. A) Junk bond. B) Cyclical stock. C) Income stock. D) Defensive stock. Show Answer Correct Answer: B) Cyclical stock. 21. A balanced fund typically invests in: A) Only stocks. B) Only bonds. C) A mix of stocks and bonds. D) Commodities only. Show Answer Correct Answer: C) A mix of stocks and bonds. 22. Mengapa individu atau perusahaan memilih untuk meminjam dengan tenor waktu yang lama? A) Mengurangi resiko suku bunga meningkat sebelum mereka melunasi hutangnya. B) Mengurangi resiko suku bunga menurun sebelum mereka melunasi hutangnya. C) Bunga Pinjaman cenderung lebih kecil daripada pinjaman jangka pendek. D) Bunga Pinjaman cenderung lebih tinggi daripada pinjaman jangka pendek. Show Answer Correct Answer: A) Mengurangi resiko suku bunga meningkat sebelum mereka melunasi hutangnya. 23. The major difference between debt market instruments and equity market instruments is A) The price of issuance. B) The issuers. C) The maturities. D) The market price. Show Answer Correct Answer: C) The maturities. 24. Financial markets and institutions A) Involve the movement of huge quantities of money. B) Affect the profit of business. C) Affect the type of goods and services produced in an economy. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. An index fund is: A) A fund which is active. B) A fund which can be traded in an exchange. C) A fund which is passive. D) A fund with higher fees. Show Answer Correct Answer: C) A fund which is passive. ← 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