This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 6 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are stocks? A) Shares of ownership in a corporation. B) Shares of trading in a corporation. C) Bonds with potential to make money. D) Bonds that are traded. Show Answer Correct Answer: A) Shares of ownership in a corporation. 2. In general, when market interest rates go up, the price of fixed rate bonds: A) Goes up as well. B) Goes down. C) Does not change. D) Goes up first, then falls back. Show Answer Correct Answer: B) Goes down. 3. What is STT and why is it relevant to capital gains taxation? A) It's a tax on annual profits. B) It ensures eligibility for LTCG/STCG tax benefits. C) It is a fixed service fee for brokers. D) None of the above. Show Answer Correct Answer: B) It ensures eligibility for LTCG/STCG tax benefits. 4. Which financial item is part of near money? A) Government currency. B) Checkable deposits. C) Fixed deposits in commercial banks. D) Plastic money. Show Answer Correct Answer: C) Fixed deposits in commercial banks. 5. What is the function of the securities market? A) A place where buyers and sellers of securities meet to enter into a transaction. B) A place where entrepreneurs can raise resources for their businesses. C) A place where various financial products such as shares, debentures, bonds, etc. are available for buying and selling. D) All of the above. E) Not Attempted. Show Answer Correct Answer: D) All of the above. 6. Superannuation is a financial product provided in which financial market? A) Share market. B) Derivatives market. C) Savings market. D) Financial services market. Show Answer Correct Answer: D) Financial services market. 7. What is the current yield if 11.50% bond sells in the market for Rs. 125? A) 9. B) 9.2. C) 9.25. D) 9.15. E) Not Attempted. Show Answer Correct Answer: B) 9.2. 8. What is a financial institution? A) A firm that makes money off of selling products. B) An intermediary that helps channel savings into economic investments. C) A corporation that typically falls into debt. D) A primary source of selling company investment strategy. Show Answer Correct Answer: B) An intermediary that helps channel savings into economic investments. 9. What is a junk bond? A) A bond with a high credit rating. B) A low-rated bond with a higher risk of default. C) A bond issued by the government. D) A bond that pays no interest. Show Answer Correct Answer: B) A low-rated bond with a higher risk of default. 10. It allows the issuing corporation to retire or repurchase outstanding shares within a predetermined period at a specified price. A) Callable. B) Convertible. C) Puttable. D) Cumulative. Show Answer Correct Answer: A) Callable. 11. Define speculation in the context of financial markets. A) Speculation involves holding assets for a fixed period to avoid losses. B) Speculation is the process of investing in real estate for long-term gains. C) Speculation refers to the practice of saving money in a bank account for interest. D) Speculation is the act of trading financial instruments with the expectation of profit from future price changes. Show Answer Correct Answer: D) Speculation is the act of trading financial instruments with the expectation of profit from future price changes. 12. Which one of the following is not a function of the financial market? A) Mobilization of savings. B) Price determination of securities. C) Floating of companies. D) Lowering transaction cost. Show Answer Correct Answer: C) Floating of companies. 13. Perbedaan motivasi antara partisipan pasar modal dengan pasar uang adalah di pasar modal mereka ..... A) Menggudangkan dana untuk waktu yang singkat. B) Melakukan investasi jangka pendek. C) Melakukan investasi jangka panjang. D) Menggudangkan dana untuk waktu yang lama. Show Answer Correct Answer: C) Melakukan investasi jangka panjang. 14. It involves parties and transactions related to loans granted to households who desire to buy properties, such as cars or appliances, travel, obtain education for themselves or their loved ones, or other similar needs ..... A) Mortgage market. B) Consumer credit market. C) Auction market. D) Over-the-counter market. Show Answer Correct Answer: B) Consumer credit market. 15. What is a stock? A) A stock is a share in the ownership of a company. B) A stock is a loan given to a company by its investors. C) A stock is a financial instrument used for trading currencies. D) A stock is a type of bond issued by a government. Show Answer Correct Answer: A) A stock is a share in the ownership of a company. 16. Which of the following is NOT a stock market index A) NASDAQ Composite. B) Dow Jones Industrial Average. C) S&P 500. D) SEC Index. Show Answer Correct Answer: D) SEC Index. 17. The following are features or components of finance, except: A) Utilization of funds. B) Deposit of funds. C) Availability of funds. D) Allocation of funds. Show Answer Correct Answer: B) Deposit of funds. 18. Saham preferen sering dianggap mirip dengan obligasi dari sudut pandang investor karena: A) Memberikan dividen tetap seperti bunga obligasi. B) Dapat diperdagangkan di pasar uang. C) Memiliki hak suara dalam perusahaan. D) Nilainya selalu naik. Show Answer Correct Answer: A) Memberikan dividen tetap seperti bunga obligasi. 19. What determines equilibrium interest rates? A) Supply and demand for loanable funds. B) Government regulations. C) Inflation rates. D) Stock market performance. Show Answer Correct Answer: A) Supply and demand for loanable funds. 20. Treasury Bills Commands ..... A) High Liquidity. B) Low Liquidity. C) Medium Liquidity. D) Limited Liquidity. Show Answer Correct Answer: A) High Liquidity. 21. When the expected return is lower than the required return, investors should sell the asset. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. Who pays the cost of deposits insurance? A) RBI. B) SEBI. C) Investor. D) Insured bank. Show Answer Correct Answer: D) Insured bank. 23. Which of the following is TRUE about the Title Bar? A) It displays the list of active orders. B) It provides market data for selected securities. C) It shows the current trading session and user information. D) It is used to input buy and sell orders. Show Answer Correct Answer: C) It shows the current trading session and user information. 24. The level of short term interest rates in BGN are determined by the decisions of: A) The Bulgarian National Bank. B) The European Central Bank. C) The Federal Reserve Bank of NY. D) The Prime minister of Bulgaria. E) BGN interest rates are not influenced by decisions of Central banks, but by market supply and demand. Show Answer Correct Answer: B) The European Central Bank. 25. ..... is the allotment of securities by a company to institutional investors and some selected individuals. A) Private Placement. B) Rights Issue. C) Offer to employees. D) Offer for sale. Show Answer Correct Answer: A) Private Placement. ← 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 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 10Class 12 Business Studies Chapter 10 Financial Markets Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books