This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 5 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which type of financial market instrument is generally considered the least risky? A) Equity shares. B) Government securities. C) Corporate bonds. D) Real estate investments. Show Answer Correct Answer: B) Government securities. 2. Which has less risk? A) Bonds. B) Stocks. C) All the above. D) None of the above. Show Answer Correct Answer: A) Bonds. 3. Which partnership is Jio Financial Services engaged in for asset management / wealth business? A) With Vanguard. B) With BlackRock. C) With Fidelity. D) With UBS. Show Answer Correct Answer: B) With BlackRock. 4. Corporate financing comes ultimately from: A) The financial markets and intermediaries. B) Cash generated from the firm's operations. C) The issue of shares in the firm. D) Savings by households and foreign investors. Show Answer Correct Answer: D) Savings by households and foreign investors. 5. Venture capitalists typically provide funds to high-risk startup companies but take no active role in their management. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 6. Where are stocks that are not listed on stock exchanges traded? A) Over-the-counter (OTC) markets. B) Through crowdfunding platforms. C) In private equity markets. D) On major stock exchanges. Show Answer Correct Answer: A) Over-the-counter (OTC) markets. 7. Imagine you are an entrepreneur who wants to raise funds for your startup. You decide to give investors a chance to profit by allowing your company's stock shares to be traded. What type of market would this be? A) Equity Market. B) Debt Market. C) Auction Market. D) Over-the-counter Market. Show Answer Correct Answer: A) Equity Market. 8. Companies in this category have a market cap between $ 10 to $ 200 billion. A) Large-cap. B) Mega-cap. C) Mid-cap. D) Micro-cap. Show Answer Correct Answer: A) Large-cap. 9. What is the main purpose of diversification in investment portfolios? A) Maximizing returns. B) Minimizing taxes. C) Reducing risk. D) Increasing liquidity. Show Answer Correct Answer: C) Reducing risk. 10. How many categorizations of financial markets are mentioned in the text? A) 4. B) 6. C) 8. D) 10. Show Answer Correct Answer: C) 8. 11. What is the primary risk associated with a call option in the derivatives market? A) The risk of losing the premium paid for the option. B) The risk of the underlying asset appreciating. C) The risk of exercising the option too late. D) The risk of market volatility. Show Answer Correct Answer: A) The risk of losing the premium paid for the option. 12. Which among the following is considered to be the most liquid asset? A) Gold. B) Money. C) Land. D) Government bonds. Show Answer Correct Answer: B) Money. 13. These shares gives the holders distinct rights that enable them to be prioritized over the holders of ordinary shares. A) Ordinary Share. B) Preference Share. C) Treasury Shares. D) Ordinary Preference Share. Show Answer Correct Answer: B) Preference Share. 14. Spot transactions involve the exchange of foreign currencies at some specified time and rate in the future the whereas forward markets involve immediate exchange of foreign currency . A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 15. Higher wage rates and a higher level of employment for workers are the usual consequences of A) Inclusive or craft unionism. B) Exclusive or industrial unionism. C) An above-equilibrium wage rate. D) An increase in the productivity of labor. Show Answer Correct Answer: D) An increase in the productivity of labor. 16. If the money supply/access to credit was reduced, what would happen to the Price Level? A) Falls/Deflation. B) Rises/Inflation. C) All the above. D) None of the above. Show Answer Correct Answer: A) Falls/Deflation. 17. The process of holding shares in electronic form is known as A) Demutualisation. B) Dematerialisation. C) Speculation. D) None of the above. Show Answer Correct Answer: B) Dematerialisation. 18. The settlement cycle in Indian stock exchanges is currently: A) T+3. B) T+5. C) T+1. D) Same day. Show Answer Correct Answer: A) T+3. 19. Publicly Traded Companies are required to file financial statements and documents with which entity? A) FDIC-Federal Deposit Insurance Corporation. B) FRS-Federal Reserve System. C) SEC-Securities and Exchange Commission. D) REIT-Real Estate Investment Trust. Show Answer Correct Answer: C) SEC-Securities and Exchange Commission. 20. What types of financial instruments are traded in financial markets? A) Stocks and bonds. B) Treasury Bills. C) Foreign Currencies. D) Derivatives. E) All of the above. Show Answer Correct Answer: E) All of the above. 21. A situation in which the outcome is not certain, but the probabilities can be estimated A) Portfolio diversification. B) Primary market. C) Risk. D) Savings. E) Secondary market. Show Answer Correct Answer: C) Risk. 22. Banks acquire the funds that they use to purchase income-earning assets from such sources as A) Cash items in the process of collection. B) Savings accounts. C) Reserves. D) Deposits at other banks. Show Answer Correct Answer: B) Savings accounts. 23. Which of the following TERM does not belong to the stock exchange? A) NAV. B) KPO. C) IPO. D) NSE. Show Answer Correct Answer: B) KPO. 24. What type of relationship do risk and return have? A) A direct relationship. B) A geometric relationship. C) An inverse relationship. D) A parallel relationship. Show Answer Correct Answer: A) A direct relationship. 25. Which is not a function of the Foreign Exchange Market A) Convert the Currency. B) Law implication. C) Provide Insurance. D) None of the above. Show Answer Correct Answer: B) Law implication. ← 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 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 10Class 12 Business Studies Chapter 10 Financial Markets Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books