This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 58 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In 1944, an international agreement among many countries, known as the ..... , called for fixed exchange rates between currencies. An exchange rate was set for each pair of currencies, and each country's central bank was required to maintain its respective local currency's value within 1 percent of the agreed-upon exchange rates. A) Breeton Whoods Agreement. B) Bretton Woods Agreement. C) Smithsonian Agreement. D) Smithsanian Agreement. Show Answer Correct Answer: B) Bretton Woods Agreement. 2. A series of meetings or presentations in which a company usually executives pitch an IPO to prospective investors A) Registration. B) Roadshow. C) Preliminaries. D) Reporting. Show Answer Correct Answer: B) Roadshow. 3. If a firm requires to two crores for six months time to keep the stock of raw material, it should approach A) Money market. B) Capital market. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: A) Money market. 4. Money Market deals with which type of funds? A) Long-term funds. B) Short-term funds. C) Medium-term funds. D) All types of funds. Show Answer Correct Answer: B) Short-term funds. 5. It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms. A) Commercial bill. B) Commercial papers. C) Call money. D) None of the above. Show Answer Correct Answer: A) Commercial bill. 6. What is the Australian Share Market called A) ASX. B) ASM. C) SXA. D) ASH. Show Answer Correct Answer: A) ASX. 7. What is the role of financial markets? A) To issue currency and maintain reserves. B) To stabilize the value of the Ringgit. C) To supervise the banking system. D) To transfer funds from surplus units to deficit units. Show Answer Correct Answer: D) To transfer funds from surplus units to deficit units. 8. Money market deals with ..... instruments. A) Long term. B) Medium term. C) Short term. D) All of the above. Show Answer Correct Answer: C) Short term. 9. What did the Federal Reserve Act of 1913 create and what was its purpose? A) The Federal Reserve System (The Fed) to serve as the central bank in the United States. B) The Federal Reserve Act of 1913 established the Federal Trade Commission. C) The Federal Reserve Act of 1913 created the Securities and Exchange Commission. D) The Federal Reserve Act of 1913 abolished the gold standard. Show Answer Correct Answer: A) The Federal Reserve System (The Fed) to serve as the central bank in the United States. 10. In Right Issue, shares are issued to A) General public. B) Existing shareholders. C) Institutes only. D) None of the above. Show Answer Correct Answer: B) Existing shareholders. 11. ..... is also called zero coupon bond. A) Trade bills. B) Call Money. C) Treasury bills. D) Commercial papers. Show Answer Correct Answer: C) Treasury bills. 12. When you keep deposit with a bank, you are A) Creditor. B) Unitholder. C) Debtor. D) Lender. Show Answer Correct Answer: A) Creditor. 13. What is crucially provided by central banks to help them achieve their objective of financial stability? A) Supply of workers. B) Liquidity insurance. C) Capital insurance. D) Worker insurance. Show Answer Correct Answer: B) Liquidity insurance. 14. Bonds are considered less risky than stocks because A) Bonds are issued by a national, state, or local government. B) Bondholders are paid before stockholders in the event a company fails. C) Corporations engaged in high-risk businesses are not allowed to issue bonds. D) The government regulates bonds more closely than it does stocks. Show Answer Correct Answer: B) Bondholders are paid before stockholders in the event a company fails. 15. The mandatory detail that an investor has to provide to the broker at the time of opening a demat account is A) Date of birth. B) PAN NUMBER. C) Residential satuts. D) Bank account details. Show Answer Correct Answer: B) PAN NUMBER. 16. Why is the DOW Jones Industrial Average important? A) It tells Americans how much debt the country is in. B) It helps economists predict when a stock market crash will happen. C) It provides a snapshot of how the stock market and the US economy are doing. D) None of the above. Show Answer Correct Answer: C) It provides a snapshot of how the stock market and the US economy are doing. 17. The BEST way to accumulate personal wealth is to A) Focus entirely on schoolwork and not worry about your "people" skills. B) Get as much education and job training as you can, and start saving money early in your life. C) Never do volunteer work or take an unpaid internship. D) Refuse to start at the bottom of a company in an entry-level job. Show Answer Correct Answer: B) Get as much education and job training as you can, and start saving money early in your life. 18. Bonds and shares are traded in A) Money markets. B) Capital markets. C) Forex markets. D) Product markets. Show Answer Correct Answer: B) Capital markets. 19. Why do higher interest rates attract foreign investment? A) They make investments riskier. B) They offer better returns on investments. C) They increase inflation. D) They lower currency value. Show Answer Correct Answer: B) They offer better returns on investments. 20. In the equation MV = PT, 'T' stands for: A) Total supply. B) Transaction demand. C) Taxation rate. D) Quantity of goods (or transactions). Show Answer Correct Answer: D) Quantity of goods (or transactions). 21. What allows people to invest at a lower cost than paying someone to do it for them? A) Mutual funds. B) Principal. C) Index funds. D) Bonds. Show Answer Correct Answer: C) Index funds. 22. A downtrend can best be described as ..... A) A series of lower lows and higher highs. B) A series of lower lows and lower highs. C) A long line of downward price movements. D) An old trend in trading. Show Answer Correct Answer: B) A series of lower lows and lower highs. 23. Which of the following is not the reason for acquisition? A) Increase market power. B) Overcoming entry barriers. C) Increase diversification. D) Building up brand image. Show Answer Correct Answer: D) Building up brand image. 24. Factoring services are mainly used by which type of firms? A) Large industries. B) Small and medium enterprises. C) Banks. D) Government agencies. Show Answer Correct Answer: B) Small and medium enterprises. 25. The process of holding securities in an electronic form is called ..... A) Beneficial Owner. B) Depositry Participant. C) Rolling settlement. D) Dematerialisation. Show Answer Correct Answer: D) Dematerialisation. ← 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