This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 51 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Bank's make their profits primarily by issuing A) Equity. B) Negotiable CDs. C) Loans. D) NOW accounts. Show Answer Correct Answer: C) Loans. 2. Primary market facilitates business firms A) Short term finance. B) Medium term finance. C) New issue market. D) Indirect market. Show Answer Correct Answer: C) New issue market. 3. Which two banks have the highest weightage in Bank Nifty (as of latest data)? A) HDFC Bank & ICICI Bank. B) PNB and Bank of India. C) RBI and NABARD. D) SBI and Canara Bank. Show Answer Correct Answer: A) HDFC Bank & ICICI Bank. 4. Direct transfers is a Capital allocation process occur when a business sells its stocks or bonds directly to savers . A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 5. Governments issued bonds as know as what in the UK? A) Golden bond. B) Gilt. C) Gold edge bond. D) None of the above. Show Answer Correct Answer: B) Gilt. 6. Which financial market is known for trading options and futures contracts? A) Money Market. B) Forex Market. C) Commodity Market. D) Derivatives Market. Show Answer Correct Answer: D) Derivatives Market. 7. In financial markets, the period of maturity more than five years of financial instruments is classified as A) Intermediate term. B) Capital term. C) Short-term. D) Long-term. Show Answer Correct Answer: D) Long-term. 8. Which of the following is NOT an instrument of the money market? A) Treasury Bills. B) A bill of exchange. C) Company bonds. D) Treasury certificate. Show Answer Correct Answer: C) Company bonds. 9. What does SEBI stand for? A) Securities and Exchange Bureau of India. B) Securities and Exchange Board of India. C) Securities and Economic Board of India. D) Securities and Economic Bureau of India. Show Answer Correct Answer: B) Securities and Exchange Board of India. 10. The 'face value' of a share is also called: A) Market value. B) Nominal value. C) Issue price. D) Discounted value. Show Answer Correct Answer: B) Nominal value. 11. How does the financial system impact economic growth? A) The financial system impacts economic growth by efficiently allocating resources, enhancing liquidity, and promoting stability. B) The financial system has no effect on economic growth or stability. C) The financial system hinders economic growth by creating inefficiencies. D) The financial system only benefits large corporations and not the economy. Show Answer Correct Answer: A) The financial system impacts economic growth by efficiently allocating resources, enhancing liquidity, and promoting stability. 12. Shares actively traded in the stock market and are owned by a mix of public and private investors. A) Widely. B) Privately. C) Publicly. D) Closely. Show Answer Correct Answer: C) Publicly. 13. What are financial institutions? A) Financial institutions are companies that only offer loans to individuals. B) Financial institutions are non-profit organizations that provide free services. C) Financial institutions are organizations that provide financial services such as banking, investment, and insurance. D) Financial institutions are government agencies that regulate the economy. Show Answer Correct Answer: C) Financial institutions are organizations that provide financial services such as banking, investment, and insurance. 14. What does a discount broker provide? A) Access to exclusive investment opportunities. B) Comprehensive financial planning services. C) The basic services needed to buy and sell securities. D) Investment advice and portfolio management. Show Answer Correct Answer: C) The basic services needed to buy and sell securities. 15. Secondary markets are important because they: A) Decide IPO price bands. B) Provide liquidity & price discovery. C) Control inflation. D) Issue government bonds. Show Answer Correct Answer: B) Provide liquidity & price discovery. 16. Which financial market is known for trading long-term debt securities with maturities typically exceeding 10 years? A) Money market. B) Bond market. C) Equity market. D) Foreign exchange market. Show Answer Correct Answer: B) Bond market. 17. The SEC is a government agency that oversees FINRA A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 18. A firm should use ..... when evaluating an investment A) The least costly source of financing. B) The most costly source of financing. C) The weighted average cost of all financing sources. D) The current opportunity cost. Show Answer Correct Answer: C) The weighted average cost of all financing sources. 19. Trading procedure on a stock exchange. Which the correct order of steps below:-1.Placing an order2. Opening Demat Account3. Selecting a broker4.Settlement of transaction5. Executing the order A) 3, 2, 1, 5, 4. B) 1, 3, 4, 2, 5. C) 2, 1, 3, 5, 4. D) 1, 2, 3, 5, 4. Show Answer Correct Answer: A) 3, 2, 1, 5, 4. 20. A market where debt securities are issued and traded A) Equity Market. B) Bond Market. C) Capital Market. D) Money Market. Show Answer Correct Answer: B) Bond Market. 21. The capital market consists of A) Development banks. B) Commercial banks. C) Stock exchanges. D) All of the above. Show Answer Correct Answer: D) All of the above. 22. Which of the following is the method of collecting capital? A) Public Issue. B) Offer for Sale. C) Private Placement. D) All the above. Show Answer Correct Answer: D) All the above. 23. Financial markets promote economic efficiency by A) Causing recessions. B) Channeling funds from surplus units to deficit units. C) Channeling funds from deficit Units to surplus units. D) Creating inflation. E) Reducing investment. Show Answer Correct Answer: B) Channeling funds from surplus units to deficit units. 24. What is meant by the expression risk to reward as it pertains to trading? A) It is how much capital you are risking compared to how much you stand to gain. B) It is how much you are going to win on a trade when you trade forex. C) It refers to the way you enter a trade as a buy or sell. D) It specifically deals with a scalping strategy that you would use when you are in the markets during the accumulation phase. Show Answer Correct Answer: A) It is how much capital you are risking compared to how much you stand to gain. 25. What is fundamental analysis in security analysis? A) Fundamental analysis is a method of evaluating a security's intrinsic value by analyzing economic, financial, and other factors. B) Technical analysis focuses on price movements and trading volume. C) Sentiment analysis evaluates market psychology and investor emotions. D) Quantitative analysis uses mathematical models to assess stock performance. Show Answer Correct Answer: A) Fundamental analysis is a method of evaluating a security's intrinsic value by analyzing economic, financial, and other factors. ← 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