This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 55 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which among the following is NOT a valid stock exchange? A) NIKKEI 225. B) S & P. C) KOSPO. D) NASDAQ. Show Answer Correct Answer: C) KOSPO. 2. Stock that is paid first and offers no voting rights A) Common stock. B) Preferred stock. C) Stock exchange. D) Primary stock. Show Answer Correct Answer: B) Preferred stock. 3. Which of the following is NOT a feature of a bond? A) It pays regular interest. B) It represents ownership in a company. C) It is issued by companies or governments. D) It has a maturity date. Show Answer Correct Answer: B) It represents ownership in a company. 4. What are government bonds? A) Government bonds are stocks traded on the stock market. B) Government bonds are loans given to private companies for profit. C) Government bonds are debt securities issued by a government to finance its expenditures. D) Government bonds are physical currency issued by banks. Show Answer Correct Answer: C) Government bonds are debt securities issued by a government to finance its expenditures. 5. Every financial market has the following characteristic A) It determines the level of interest rate. B) It allows loans to be made. C) It allows common stock to be traded. D) It channels funds from lenders to borrowers. Show Answer Correct Answer: D) It channels funds from lenders to borrowers. 6. When an investment bank ..... securities, it guarantees a price for a corporation's securities and then sells them to the public. A) Underwrites. B) Undertakes. C) Overwrites. D) Overtakes. Show Answer Correct Answer: A) Underwrites. 7. You are allowed to withdraw money from your 401K at any time without penalty. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 8. Type of market in which financial instruments with up to 1 year maturity are traded is called: A) Capital market. B) Money market. C) Bond market. D) Stock market. Show Answer Correct Answer: B) Money market. 9. True or False:Riskier investments can have higher profits, but also greater losses. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 10. The secondary market deals with: A) The buying and selling of new securities. B) The buying and selling of old (second-hand) securities. C) The issuance of treasury bills. D) Short-term inter-bank lending. Show Answer Correct Answer: B) The buying and selling of old (second-hand) securities. 11. How many companies are included in the SENSEX of India? A) 30. B) 50. C) 111. D) 25. Show Answer Correct Answer: A) 30. 12. A ..... is defined as a collection of financial assets. A) Portfolio. B) Pension fund. C) Prospectus. D) None of the above. Show Answer Correct Answer: A) Portfolio. 13. Which of the following banks are insured by the DICGC? A) Cooperative Banks. B) Foreign banks functioning in India. C) Local area banks. D) Regional rural banks. E) All the above. Show Answer Correct Answer: E) All the above. 14. What factors influence stock prices? A) Employee satisfaction, brand loyalty, customer reviews. B) Company size, product pricing, marketing strategies. C) Company performance, market conditions, investor sentiment, economic indicators, interest rates, geopolitical events. D) Social media trends, advertising spend, seasonal sales. Show Answer Correct Answer: C) Company performance, market conditions, investor sentiment, economic indicators, interest rates, geopolitical events. 15. Which recent development has made it easier for individuals to engage in speculation? A) Decreased market volatility. B) Limited access to information. C) Increased regulation. D) Trading apps and online platforms. Show Answer Correct Answer: D) Trading apps and online platforms. 16. For a firm to have its securities listed on an exchange, it must meet certain requirements. These usually include measures of profitability, size, market value, and public ownership. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 17. Money market where debit and stocks are traded and maturity period is more than a year is classified as A) Short term markets. B) Long term markets. C) Capital market. D) None of these. Show Answer Correct Answer: C) Capital market. 18. Insurance that protects your family against financial loss due to your death is A) Coinsurance. B) Disability insurance. C) Life insurance. D) Comprehensive insurance. Show Answer Correct Answer: C) Life insurance. 19. RBI was established in the year: A) 1935. B) 1947. C) 1950. D) 1969. Show Answer Correct Answer: A) 1935. 20. A high Price-Earnings (P/E) ratio usually indicates that investors expect: A) Lower future growth. B) Higher future earnings growth. C) Financial distress. D) Immediate dividend cuts. Show Answer Correct Answer: B) Higher future earnings growth. 21. ..... is providing loans, guarantees, risk management products, and advisory services to low and middle income countries. A) The International Finance Corporation (IFC). B) The International Bank for Reconstruction and Development (IBRD). C) The Multilateral Investment Guarantee Agency (MIGA). D) None of the above. Show Answer Correct Answer: B) The International Bank for Reconstruction and Development (IBRD). 22. What is the function the NEAT system? A) To display stock prices in real time. B) To monitor price movements of selected securities. C) To quickly access trading functions using functional buttons. D) To view detailed security reports. Show Answer Correct Answer: A) To display stock prices in real time. 23. Kimchi Premium is: A) Premium in equities trading in South Korean exchange vs Rest of the World. B) Premium in cryptocurrency trading in South Korean exchange vs Rest of the World. C) Premium in gold trading in South Korean exchange vs Rest of the World. D) Premium in debt trading in South Korean exchange vs Rest of the World. Show Answer Correct Answer: B) Premium in cryptocurrency trading in South Korean exchange vs Rest of the World. 24. The allocated function is performed by A) Financial market. B) Capital market. C) Money market. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. Piece of ownership in a company, mutual fund or other investment A) Share/stock. B) 401K. C) Bond. D) None of the above. Show Answer Correct Answer: A) Share/stock. ← 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