This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 50 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which among the following is NOT considered a financial institution? A) Remittance centers. B) Credit cooperatives. C) Foreign exchange units. D) Revolving funds associations. Show Answer Correct Answer: D) Revolving funds associations. 2. You open a 5-year CD for $ 1, 000 that pays 2% interest, compounded annually. What is the value of that CD at the end of the 5 years? A) $ 5, 500. B) $ 1, 000. C) $ 5, 900. D) $ 1, 104.08. Show Answer Correct Answer: D) $ 1, 104.08. 3. If you are trading with a risk to reward ratio of 1:3, which of the following setups fits those parameters? A) Sally used a stop loss of 20 pips with a take profit of 10 pips. B) Ronald used a stop loss of 20 pips with a take profit of 25 pips. C) Stacy used a stop loss of 20 pips with a take profit of 60 pips. D) Marlin used a stop loss of 15 pips with a take profit of 30 pips. Show Answer Correct Answer: C) Stacy used a stop loss of 20 pips with a take profit of 60 pips. 4. Which ratio category is used to assess a company's ability to meet short-term obligations? A) Profitability ratios. B) Activity ratios. C) Liquidity ratios. D) Market ratios. Show Answer Correct Answer: C) Liquidity ratios. 5. Money market is use for ..... purpose A) Short Term. B) Long Term. C) Security. D) Stock. Show Answer Correct Answer: A) Short Term. 6. Term that refers to the total value of all a company's shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. A) Market Volatility. B) Market Diversification. C) Market Capitalization. D) Market Socialization. Show Answer Correct Answer: C) Market Capitalization. 7. The aim of the Second-Tier Securities Market is to increase the: A) Interest rates. B) Volume of security in the market. C) Number of commercial banks. D) Supply of money. Show Answer Correct Answer: B) Volume of security in the market. 8. Which of the following investments has the greatest risk? A) Stock market. B) Savings bond. C) T-Bill. D) Mutual Fund. Show Answer Correct Answer: A) Stock market. 9. Kate could not attend the last shareholders meeting and thus she granted the authority to vote on her behalf to the managers of the firm. Which one of the following terms is used to describe the method by which Kate's shares were voted? A) Straight. B) Cumulative. C) Consent-form. D) Proxy. E) In absentia. Show Answer Correct Answer: D) Proxy. 10. What does "Forex" stand for? A) For Ex-Pats. B) Foreign Exchange. C) Foreign Market. D) For Example. Show Answer Correct Answer: B) Foreign Exchange. 11. Apa nama produk pinjaman yang disediakan oleh Pegadaian untuk usaha mikro, kecil, dan menengah (UMKM)? A) KUR (Kredit Usaha Rakyat). B) Gadai Konvensional. C) Krasida (Kredit Angsuran Sistem Gadai). D) Multi Finance. Show Answer Correct Answer: C) Krasida (Kredit Angsuran Sistem Gadai). 12. Which of the following is a function of financial intermediaries? A) Issuing currency. B) Mobilizing savings. C) Promoting tourism. D) Funding education. Show Answer Correct Answer: B) Mobilizing savings. 13. What is the market where previously issued securities are traded? A) Initial public offering. B) Over-the-counter market. C) Secondary market. D) Primary market. Show Answer Correct Answer: C) Secondary market. 14. A credit card is a form of: A) Fiat money. B) Token money. C) Plastic money. D) Legal tender. Show Answer Correct Answer: C) Plastic money. 15. The minimum period till which an equity investment must be retained in order to qualify as Long Term is: A) 1 year. B) 2 year. C) 3 year. D) 4 year. Show Answer Correct Answer: A) 1 year. 16. *Is a debt financial instrument that promises to make payments periodically for a specified period of time. A) Market. B) Stock. C) Bond. D) Coupon. Show Answer Correct Answer: C) Bond. 17. What assumption is made when comparing the term structure of interest rates? A) All characteristics except maturity are equal. B) All securities have the same interest rate. C) All securities are from the same issuer. D) All securities have the same tax rate. Show Answer Correct Answer: A) All characteristics except maturity are equal. 18. Formal contract to repay borrowed money and interest on the borrowed money at regular future intervals A) Bond. B) Capital market. C) Equities. D) Futures contract. E) Financial system. Show Answer Correct Answer: A) Bond. 19. What might indicate that a country's currency is likely to appreciate? A) Decreasing interest rates. B) High inflation rates. C) Increasing foreign investment. D) High unemployment rates. Show Answer Correct Answer: C) Increasing foreign investment. 20. Identify the instrument of Money Market:It is used by commercial and development and financial Institutions during the period when the deposit growth of a bank is slow but the demand for credit is high A) Commercial Bills. B) Call Money. C) Certificate of deposits. D) Commercial Papers. Show Answer Correct Answer: C) Certificate of deposits. 21. Investment company that pools people's money to make short-term loans to businesses and banks A) Mutual fund. B) Pension fund. C) Financial assets. D) None of the above. Show Answer Correct Answer: A) Mutual fund. 22. Salah satu fungsi pasar spot adalah ..... A) Mengurangi risiko nilai tukarnya dan untuk mengunci nilai tukar di masa depan. B) Mengubah pendapatan yang dihasilkan dari penjualan di luar negeri menjadi mata uang negara asal mereka. C) Melakukan lindung nilai terhadap risiko nilai tukar atau untuk mendapatkan mata uang asing. D) Mewakili ekspektasi pedagang mata uang dan bankir mengenai kurs spot mata uang di masa depan. Show Answer Correct Answer: B) Mengubah pendapatan yang dihasilkan dari penjualan di luar negeri menjadi mata uang negara asal mereka. 23. Financial services includes A) Call money market. B) Bill market. C) Leasing. D) None of the above. Show Answer Correct Answer: C) Leasing. 24. Through financial market, government and central bank can stabilize and regulate currency circulation, which help them ..... A) All of the above. B) Stabilize the exchange rate. C) Control inflation. D) Offset budget deficit. Show Answer Correct Answer: A) All of the above. 25. What role do financial markets play in resource allocation? A) Financial markets primarily focus on currency exchange rates. B) Financial markets are only relevant for large corporations. C) Financial markets do not influence individual investment choices. D) Financial markets allocate resources by determining asset prices through supply and demand, guiding investment decisions. Show Answer Correct Answer: D) Financial markets allocate resources by determining asset prices through supply and demand, guiding investment decisions. ← 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