This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 59 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Best Sell order is the order with the ..... A) Average Buy price. B) Lowest Sell Price. C) Average Sell price. D) Highest Buy Price. E) Not Attempted. Show Answer Correct Answer: B) Lowest Sell Price. 2. Non marketable assets are A) Government security. B) Equity. C) Bank deposit. D) Bearer debenture. Show Answer Correct Answer: C) Bank deposit. 3. Banks provide which of the following EXCEPT A) Debit cards. B) Loans. C) Check writing services. D) Government subsidies. Show Answer Correct Answer: D) Government subsidies. 4. Which market deals with existing securities? A) Primary. B) Secondary. C) Capital. D) Money. Show Answer Correct Answer: B) Secondary. 5. The Reserve Bank of India primarily regulates which of the following markets? A) Commodity Market. B) Money Market. C) Real Estate Market. D) Stock Market. Show Answer Correct Answer: B) Money Market. 6. The market price of a share is Rs. 120. Its book value is Rs. 20. The earnings of a share is Rs.11. The PE multiple of this share is A) 11. B) 6. C) 10.9. D) 0.09. Show Answer Correct Answer: C) 10.9. 7. ..... may antagonize customers and thus can be a very costly way of acquiring funds to meet an unexpected deposit outflow. A) Selling securities. B) Selling loans. C) Calling in loans. D) Selling negotiable CDs. Show Answer Correct Answer: C) Calling in loans. 8. Which of the following is included in the financial assets? A) Shares. B) Debentures. C) Treasury bill. D) All the above. Show Answer Correct Answer: D) All the above. 9. What is liquidity, and when is it an important consideration in savings? A) Liquidity refers to the ease of converting assets to cash; important for emergencies. B) Liquidity is the interest rate on savings; important for long-term goals. C) Liquidity is the amount of savings; important for short-term goals. D) Liquidity is the value of investments; important for retirement. Show Answer Correct Answer: A) Liquidity refers to the ease of converting assets to cash; important for emergencies. 10. What type of instruments are traded in a Money Market? A) Call money. B) Treasury bills. C) Commercial bills. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Savings bonds sell for less than their face value because A) Banks compete to sell them. B) This is how they pay interest. C) They pay dividends twice a year. D) Interest tax-exempt. Show Answer Correct Answer: B) This is how they pay interest. 12. As the costs associated with deposit outflows ..... , the banks willingness to hold excess reserves will ..... A) Decrease; increase. B) Increase; decrease. C) Increase; increase. D) Decrease; not be affected. Show Answer Correct Answer: C) Increase; increase. 13. Which of the following is a feature of term life insurance? A) Lifetime coverage without expiration. B) Flexible premium payment options. C) Guaranteed cash value accumulation. D) Coverage for a specific period of time. Show Answer Correct Answer: D) Coverage for a specific period of time. 14. What are these? NYSE-NASDAQ A) Stocks. B) Markets. C) Stock exhanges. D) Securities and exchanges. Show Answer Correct Answer: C) Stock exhanges. 15. Follows 500 stock prices to measure the health of the market A) Dow Jones. B) S & P 500. C) NYSE. D) NASDAQ. Show Answer Correct Answer: B) S & P 500. 16. ..... is defined as the annual rate of return on a bond if the bond were held to maturity. A) Yield. B) Dividend. C) Coupon rate. D) None of the above. Show Answer Correct Answer: A) Yield. 17. What kind of fund collects and invests income for later payments to eligible recipients? A) Pension fund. B) Credit union fund. C) Insurance fund. D) Mutual fund. Show Answer Correct Answer: A) Pension fund. 18. What is the primary appeal of the Eurocurrency market? A) High regulation. B) Low transaction costs due to lack of regulation. C) Government-backed securities. D) Guaranteed returns. Show Answer Correct Answer: B) Low transaction costs due to lack of regulation. 19. If a bank needs to raise the amount of capital relative to assets, a bank manager might choose to A) Buy back bank stock. B) Pay higher dividends. C) Reduce the bank's assets by making fewer loans. D) Sell securities the bank owns and put the funds into the reserve account. Show Answer Correct Answer: C) Reduce the bank's assets by making fewer loans. 20. How do banks help us with money? A) Banks only store money without any services. B) Banks charge fees for all transactions without providing loans. C) Banks help us by managing our deposits, providing loans, facilitating payments, and offering financial services. D) Banks only help businesses and not individuals. Show Answer Correct Answer: C) Banks help us by managing our deposits, providing loans, facilitating payments, and offering financial services. 21. Income not used for consumption A) Investment. B) Savings. C) Diversification. D) Return. Show Answer Correct Answer: B) Savings. 22. Forward markets for currencies of developing countries are: A) Prohibited. B) Less liquid than markets for currencies of developed countries. C) More liquid than markets for currencies of developed countries. D) Only available for use by government agencies. Show Answer Correct Answer: B) Less liquid than markets for currencies of developed countries. 23. The PRA and FCA are responsible for ..... A) Macro-prudential regulation. B) Micro-prudential regulation. C) All the above. D) None of the above. Show Answer Correct Answer: B) Micro-prudential regulation. 24. The benchmark stock market index of India is ..... A) S&P 500. B) Nikkei 225. C) Dow Jones. D) The NSE Nifty 50. E) Not Attempted. Show Answer Correct Answer: D) The NSE Nifty 50. 25. Bank A) Financial institution. B) Financial market. C) Financial instrument. D) None of the above. Show Answer Correct Answer: A) Financial institution. ← 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