This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 57 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 57 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When the value of the British pound changes from $ 1.50 to $ 1.25, the pound has ..... and the dollar has ..... A) Appreciated; appreciated. B) Depreciated; appreciated. C) Appreciated; depreciated. D) Depreciated; depreciated. Show Answer Correct Answer: B) Depreciated; appreciated. 2. What is called when a company issues stock for the first time and may be bought by the general public? A) Initial Public Offering (IPO). B) Secondary Market Offering. C) Private Placement. D) Bond Issuance. Show Answer Correct Answer: A) Initial Public Offering (IPO). 3. Because borrowers, once they have a loan, are more likely to invest in high-risk investment projects, banks face the A) Adverse selection problem. B) Lemon problem. C) Adverse credit risk problem. D) Moral hazard problem. Show Answer Correct Answer: D) Moral hazard problem. 4. Bonds A) Financial instument. B) Financial market. C) Financial institution. D) None of the above. Show Answer Correct Answer: A) Financial instument. 5. How do retail banks make a profit? A) Having a high positive spread. B) Having a high negative spread. C) Having a small negative spread. D) Having a small positive spread. Show Answer Correct Answer: A) Having a high positive spread. 6. Which of the following is NOT a characteristic of a well-functioning financial market? A) Liquidity. B) Transparency. C) Market Manipulation. D) Price Discovery. Show Answer Correct Answer: C) Market Manipulation. 7. Shares of stock from a variety of companies that you own are called? A) Dividend. B) Portfolio. C) Commission. D) Diversity. Show Answer Correct Answer: B) Portfolio. 8. What is an IPO? A) Initial Polling Office. B) Initial Public Offering. C) International Public Office. D) Increasing Public Opportunity. Show Answer Correct Answer: B) Initial Public Offering. 9. What type of information can you find in the Inquiry Window? A) Real-time stock prices only. B) Latest trades and price movements. C) Detailed market data and analysis on selected securities. D) The list of all available securities. Show Answer Correct Answer: C) Detailed market data and analysis on selected securities. 10. Which of the following is NOT the benefits of financial intermediaries? A) Package small amounts by savers into large bundles for borrowers. B) Solve the problem of scarcity of capital. C) Reduce transaction cost. D) Increase risk of lending money. Show Answer Correct Answer: D) Increase risk of lending money. 11. This money market instrument is used by banks to maintain their cash reserve ratio A) Commercial paper. B) Call money. C) Certificate of deposit. D) Commercial bill. Show Answer Correct Answer: B) Call money. 12. Imagine you are studying the stock market and you come across a market where each transaction is scheduled at specific time intervals. What is this type of market called? A) Call Market. B) Financial Market. C) Bond Market. D) Continuous Market. Show Answer Correct Answer: A) Call Market. 13. Plunging oil prices is an example of which of the following types of investment risk? A) Company risk. B) Industry risk. C) Political risk. D) Inflation risk. Show Answer Correct Answer: B) Industry risk. 14. The National Stock Exchange was established on A) 1992. B) 1993. C) 1994. D) 1995. Show Answer Correct Answer: A) 1992. 15. Money market is a market for A) Long term fund. B) Short term fund. C) Medium term fund. D) All of the above. Show Answer Correct Answer: B) Short term fund. 16. The major liabilities of the commercial banks are? A) Junk bonds. B) Loans. C) Deposits. D) Swap bonds. Show Answer Correct Answer: C) Deposits. 17. Exchange markets and over counter markets are considered as two types of A) Floating market. B) Risky market. C) Secondary market. D) Primary market. Show Answer Correct Answer: C) Secondary market. 18. CBA stands for A) Commonwealth bank australia. B) Central bank australai. C) Commonwealth bonds authority. D) Central borrowing authorities. E) Credit bond assets. Show Answer Correct Answer: D) Central borrowing authorities. 19. What are investment banks? A) Investment banks are financial institutions that help clients raise capital and provide advisory services for financial transactions. B) Investment banks are retail banks that offer personal loans and savings accounts. C) Investment banks are insurance companies that provide life and health coverage. D) Investment banks are government agencies that regulate financial markets. Show Answer Correct Answer: A) Investment banks are financial institutions that help clients raise capital and provide advisory services for financial transactions. 20. The Nigerian Stock Exchange was established in: A) 1950. B) 1960. C) 1970. D) 1985. Show Answer Correct Answer: B) 1960. 21. What is the most liquid financial market in the world? A) Stocks and Commodities. B) Options Market. C) The Stock Market. D) The Forex Market. Show Answer Correct Answer: D) The Forex Market. 22. Metode Perdagangan OTC menggunakan sistem dimana harga bid dan ask diatur oleh ..... A) Broker. B) Algoritma Sistem. C) Partisipan Pasar. D) Market Makers. Show Answer Correct Answer: D) Market Makers. 23. Di bawah ini termasuk instrumen pembatasan mata uang, kecuali ..... A) Lisensi impor. B) Pembatasan jumlah. C) Tingkat suku bunga. D) Persetujuan pemerintah. Show Answer Correct Answer: C) Tingkat suku bunga. 24. Which product is most likely to have a higher fee: A) Regular mutual fund. B) Direct mutual fund. C) Index fund. D) Passive fund. Show Answer Correct Answer: A) Regular mutual fund. 25. Calculate the value 5 years hence of a deposit of Rs. 1, 000 made today if the interest rate is 8% (compounded annually). A) Rs.1, 040. B) Rs.1, 400. C) Rs.1, 000. D) Rs.1, 469. E) Not Attempted. Show Answer Correct Answer: D) Rs.1, 469. ← 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