This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 52 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. "Money Laundering" is the process of: A) Ensuring income is earned legally. B) Funneling "dirty" money through transactions to make it appear legitimate. C) Converting Crypto to US Currency. D) Verifying all taxes have been paid before distributing dividends. Show Answer Correct Answer: B) Funneling "dirty" money through transactions to make it appear legitimate. 2. How do financial markets influence economic growth? A) Financial markets have no impact on innovation. B) Financial markets only affect stock prices. C) Economic growth is solely determined by government policies. D) Financial markets influence economic growth by allocating resources efficiently, enabling investment, and facilitating innovation. Show Answer Correct Answer: D) Financial markets influence economic growth by allocating resources efficiently, enabling investment, and facilitating innovation. 3. Why should investment bankers understand all market types? A) To focus only on IPOs. B) To advise clients across funding, risk & growth options. C) To avoid SEBI regulations. D) To invest their own money. Show Answer Correct Answer: B) To advise clients across funding, risk & growth options. 4. BSE Sensex consists of how many companies? A) 30. B) 30. C) 50. D) 100. Show Answer Correct Answer: A) 30. 5. Formula of Intrest Covergae Ratio A) (Interest Expenses /Earning before interest & Taxes)*100. B) (Earning before interest /interest expenses)*100. C) (Net Operating Income/Total Debt Service). D) (Long term loans /Capital Employed)*100. Show Answer Correct Answer: B) (Earning before interest /interest expenses)*100. 6. Transactions in common stock occur in the money market, due to the large amount of money involved in such transactions. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 7. An example of the problem of ..... is when a corporation that uses the funds raised from selling new shares of stock to pay for Caribbean cruises for all of its employees and their families. A) Prudential supervision. B) Moral hazard. C) Adverse selection. D) Risk sharing. E) Credit risk. Show Answer Correct Answer: B) Moral hazard. 8. Which of the following is an example of a financial service? A) Insurance. B) Manufacturing. C) Retail. D) Agriculture. Show Answer Correct Answer: A) Insurance. 9. Which of the following is a key aspect of financial stability? A) Reducing consumer protection. B) Limiting monetary policy support. C) Increasing systemic risk. D) Promoting economic growth. Show Answer Correct Answer: D) Promoting economic growth. 10. An instrument used in the money market is: A) Shares. B) Government bonds. C) Treasury Bills. D) Development stocks. Show Answer Correct Answer: C) Treasury Bills. 11. Which would increase a firm's demand for a resource? A) An increase in the prices of complementary resources used by the firm. B) A decrease in the demand for the firm's product. C) An increase in the productivity of the resource. D) An increase in the price of the resource. Show Answer Correct Answer: C) An increase in the productivity of the resource. 12. At 8 % inflation, an item costing 100 today will cost A) 208. B) 118.84. C) 116.64. D) 108. Show Answer Correct Answer: D) 108. 13. The company made a bonus issue of 1 for 10. You held a total of 2, 000 shares of the company before the bonus issue was made. How many bonus shares were received by you. A) 200 shares. B) 182 shares. C) 2, 200 shares. D) 20, 000 shares. Show Answer Correct Answer: A) 200 shares. 14. At 10% annual inflation rate, an item costing Rs. 100 today, would cost Rs ..... after one year. A) Rs. 110. B) Rs.101. C) Rs.115. D) Rs. 109. E) Not Attempted. Show Answer Correct Answer: A) Rs. 110. 15. What is the role of international banks in capital markets? A) To issue government bonds. B) To provide loans only to corporations. C) To gather excess cash and channel it to borrowers. D) To regulate interest rates. Show Answer Correct Answer: C) To gather excess cash and channel it to borrowers. 16. A function of the money market is: A) Provision of capital for permanent long-term investments. B) Offering investment opportunities on a short-term basis. C) Facilitating the sale of company ownership. D) Funding large scale industrial projects only. Show Answer Correct Answer: B) Offering investment opportunities on a short-term basis. 17. Direct exchange of goods/services for other goods/services is called: A) Liquidity. B) Money. C) Barter. D) Haggling. Show Answer Correct Answer: C) Barter. 18. First Indian Stock Exchange to offer fully automated Screen based system A) Bombay Stock exchange. B) Delhi Stock Exchange. C) National Stock exchange. D) None of the above. Show Answer Correct Answer: C) National Stock exchange. 19. National stock exchange of India situated at? A) Bangalore. B) Hyderabad. C) Bombay. D) None of these. Show Answer Correct Answer: C) Bombay. 20. What is the current total of the BoE's purchases of bonds via QE? A) £435bn. B) £645bn. C) £895bn. D) £990bn. Show Answer Correct Answer: C) £895bn. 21. To finance the building of a new police station, the government of the city of Richmond is MOST likely to issue a A) Junk bond. B) Treasury bond. C) Municipal bond. D) Money market bond. Show Answer Correct Answer: C) Municipal bond. 22. Which of these is considered one of the key disruptive trends in financial services for 2025? A) Reverse mortgages. B) Embedded finance. C) High frequency trading for retail users. D) Manual compliance systems. Show Answer Correct Answer: B) Embedded finance. 23. The highest bond rating is A) D+. B) AAA. C) BB. D) CCC. Show Answer Correct Answer: B) AAA. 24. What is the primary function of the Title Bar in the NEAT system? A) To show user information and system status. B) To display real-time trading data. C) To place orders. D) To display a list of market securities. Show Answer Correct Answer: A) To show user information and system status. 25. The mandatory detail that an investor has to provide to the broker at the time of opening of Demat account is A) Date of birth and address. B) PAN number. C) Residential status. D) Bank account details. Show Answer Correct Answer: B) PAN number. ← 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