This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 60 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 60 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When Mr. McFall gets paid, he knows he doesn't have to spend it all at once because money is A) Standard of Value. B) Medium of Exchange. C) Store of Value. D) Fiat money. Show Answer Correct Answer: C) Store of Value. 2. The financial system includes the following ; A) Financial Institutions. B) Financial Markets. C) Financial Services. D) Financial Instruments. E) All of the above. Show Answer Correct Answer: E) All of the above. 3. Which of the following is a function of the stock exchange? A) Setting interest rates. B) Raising of long-term capital investment. C) Printing currency. D) Regulating commercial banks. Show Answer Correct Answer: B) Raising of long-term capital investment. 4. To ..... means to base decisions on an assessment of costs and benefits. A) Speculate. B) Day trade. C) Diversify. D) Economize. Show Answer Correct Answer: D) Economize. 5. In financial markets, financial instruments with maturity less than one year is classified as A) Capital term instruments. B) Intermediate term instruments. C) Short-term instruments. D) Long-term instruments. Show Answer Correct Answer: C) Short-term instruments. 6. What kind of finance involves financial intermediation? A) Public finance. B) Direct finance. C) Private finance. D) Indirect finance. Show Answer Correct Answer: D) Indirect finance. 7. The Bank Secrecy Act prevents: A) Criminals from using financial institutions to launder or hide money. B) Banks from charging illegally high interest rates to consumers. C) Financial Institutions from hiding profits to fool shareholders. D) All Answers are Correct. Show Answer Correct Answer: A) Criminals from using financial institutions to launder or hide money. 8. Unorganized banking sector consist of A) Commercial bank. B) Indigenous bank. C) LIC. D) RRB. Show Answer Correct Answer: B) Indigenous bank. 9. Which agency regulates and supervises NBFCs? A) Finance Ministry. B) SEBI. C) RBI. D) Respective state government. Show Answer Correct Answer: C) RBI. 10. An agreement to buy or sell at a specific date in the future at a predetermined price A) Bond. B) Capital market. C) Equities. D) Futures contract. E) Financial system. Show Answer Correct Answer: D) Futures contract. 11. What are the characteristics of assets traded in capital markets? A) Assets that can only be traded in domestic markets. B) Assets with a maturity of greater than a year, including stocks and long-term bonds. C) Assets that include only physical commodities like gold and silver. D) Assets that are highly liquid and have a maturity of less than a year. Show Answer Correct Answer: B) Assets with a maturity of greater than a year, including stocks and long-term bonds. 12. Which are the advantages of a mutual fund for an investor? A) Its price doesn't change & liquid. B) Professionally managed & offers diversification. C) It is guaranteed & pays a dividend. D) None of the above. Show Answer Correct Answer: B) Professionally managed & offers diversification. 13. What hours are the forex markets open? A) 8:00 A.M.-5:00 P.M. EST. B) 12 noon-12 midnight. C) Weekdays only. D) 24-hours a day except weekends. Show Answer Correct Answer: D) 24-hours a day except weekends. 14. Mencegah individu dan bisnis penduduk berinvestasi di negara lain dapat berdampak pada ..... A) Peningkatan neraca perdagangan. B) Pertumbuhan ekonomi negara. C) Mempertahankan persediaan mata uang asing. D) Membayar utang kepada negara lain. Show Answer Correct Answer: B) Pertumbuhan ekonomi negara. 15. If a trader wants to analyze a security's performance over the last year, which window would they use? A) Ticker Window. B) Snap Quote. C) Order/Trade Window. D) Inquiry Window. Show Answer Correct Answer: D) Inquiry Window. 16. How do financial markets facilitate capital allocation? A) Financial markets are solely for trading commodities and not for capital allocation. B) Financial markets restrict access to capital for small businesses. C) Financial markets connect investors with capital needs, enabling efficient allocation of resources. D) Financial markets only serve to increase government debt. Show Answer Correct Answer: C) Financial markets connect investors with capital needs, enabling efficient allocation of resources. 17. What are exchange-traded funds (ETFs)? A) Stocks that represent ownership in a single company. B) Exchange-traded funds (ETFs) are investment funds traded on stock exchanges that hold a collection of assets. C) Bonds issued by governments that are traded on the stock market. D) Mutual funds that can only be purchased directly from the fund company. Show Answer Correct Answer: B) Exchange-traded funds (ETFs) are investment funds traded on stock exchanges that hold a collection of assets. 18. Apa tujuan utama dari pembelian financial guarantees oleh penerbit sekuritas yang secara finansial lebih lemah? A) Untuk meningkatkan bunga obligasi. B) Untuk menurunkan risiko obligasi mereka. C) Untuk mempercepat pembayaran obligasi. D) Untuk mengurangi jumlah investor. Show Answer Correct Answer: B) Untuk menurunkan risiko obligasi mereka. 19. It is used as an alternative to bank borrowing for large and creditworthy companies, A) Commercial bill. B) Commercial papers. C) Call money. D) None of the above. Show Answer Correct Answer: B) Commercial papers. 20. Aside from M3 which of the following is included in the definition of broad money? A) Deposits with the RBA. B) Deposits held in foreign banks by Australian companies. C) Currency including notes and coins. D) Borrowings by all financial intermediaries from the private sector. Show Answer Correct Answer: D) Borrowings by all financial intermediaries from the private sector. 21. Which of the following are long-term financial instruments? A) A negotiable certificate of deposit. B) A banker's acceptance. C) A treasury bond. D) A treasury bill. Show Answer Correct Answer: C) A treasury bond. 22. Which one of the following is responsible for issuing bank notes? A) Building societies. B) Central bank. C) Commercial bank. D) Insurance companies. Show Answer Correct Answer: B) Central bank. 23. Why, in particular, is liquidity insurance necessary? A) Banks borrow long term but lend short term. B) Banks are not good at their job. C) Banks borrow short term but lend long term. D) Banks never make a profit from lending. Show Answer Correct Answer: C) Banks borrow short term but lend long term. 24. Which role do commercial banks primarily serve? A) Conducting market research. B) Connecting savers and borrowers. C) Facilitating capital raising. D) Providing insurance products. Show Answer Correct Answer: B) Connecting savers and borrowers. 25. Which of the following is an instrument used in the capital market? A) Treasury Bills. B) Bill of exchange. C) Shares. D) Treasury certificate. Show Answer Correct Answer: C) Shares. ← 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