This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 61 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one of the following types of securities has no priority in a bankruptcy proceeding? A) Convertible bond. B) Senior debt. C) Common stock. D) Preferred stock. E) Straight bond. Show Answer Correct Answer: C) Common stock. 2. Which of the following is the regulator of the credit rating agencies in India? A) R B I. B) The S B I. C) S I D B I. D) The S E B I. E) None of these. Show Answer Correct Answer: D) The S E B I. 3. All the following companies can be categorized as having a high operating leverage EXCEPT: A) Asset Management Companies. B) Brokerage Firms. C) Registrar and Transfer Agents. D) FMCG. Show Answer Correct Answer: D) FMCG. 4. ..... market is a market for short term fund A) Capital market. B) Money market. C) Cash market. D) Commodity market. Show Answer Correct Answer: B) Money market. 5. Which of the following is an asset? A) Share Capital. B) Advances. C) Long Term Borrowing. D) Retained profit. Show Answer Correct Answer: B) Advances. 6. How can an investor acquire equity shares? A) Secondary Market only. B) Through the Primary Market or Secondary Market. C) Money Market. D) Primary Market only. E) Not Attempted. Show Answer Correct Answer: B) Through the Primary Market or Secondary Market. 7. What is it called with the market is rising for months and people are buying/selling stocks? A) Bull market. B) Bear market. C) Rabbit market. D) Hippo market. Show Answer Correct Answer: A) Bull market. 8. ..... value is the historical cost less accumulated depreciation A) Book value. B) Face Value. C) Market Value. D) None of the above. Show Answer Correct Answer: A) Book value. 9. What is the primary role of financial intermediaries? A) To provide loans at high interest rates. B) To manage government monetary policy. C) To invest in stock markets exclusively. D) To connect savers and borrowers. Show Answer Correct Answer: D) To connect savers and borrowers. 10. Which organization regulates mutual funds in India? A) RBI. B) SEBI. C) NABARD. D) IRDAI. Show Answer Correct Answer: B) SEBI. 11. What is the regulatory framework governing financial services in India? A) It includes the Ministry of Finance and the Securities Act. B) The framework consists of RBI, SEBI, and the Income Tax Act. C) The regulatory bodies are RBI, SEBI, and the Consumer Protection Act. D) The regulatory framework includes RBI, SEBI, IRDAI, PFRDA, and relevant laws like the Companies Act and Banking Regulation Act. Show Answer Correct Answer: D) The regulatory framework includes RBI, SEBI, IRDAI, PFRDA, and relevant laws like the Companies Act and Banking Regulation Act. 12. During periods of inflation, money does not function well as ..... A) Standard of Value. B) Medium of Exchange. C) Store of Value. D) Commodity money. Show Answer Correct Answer: C) Store of Value. 13. Who are the participants in the Securities Market? A) Investor. B) Intermediaries, such as merchant bankers, brokers etc. C) Issuers, i.e. companies who issue shares. D) All of the above. E) Not Attempted. Show Answer Correct Answer: D) All of the above. 14. Which of the following best describes the concept of arbitrage in financial markets? A) Buying and holding assets for long-term gains. B) Simultaneously buying and selling an asset in different markets to profit from price differences. C) Selling securities short to capitalize on expected price declines. D) Investing in securities for tax benefits. Show Answer Correct Answer: B) Simultaneously buying and selling an asset in different markets to profit from price differences. 15. The followings are correct regarding characteristics of money market securities EXCEPT A) High expected return. B) Liquid. C) Low degree of risk. D) Low expected return. Show Answer Correct Answer: A) High expected return. 16. What is the BoE's stated remit? A) To increase the money supply. B) To increase the stability of the £. C) To increase exports. D) To deliver price stability and, subject to this, to support the government's economic objectives including those for growth and employment. Show Answer Correct Answer: D) To deliver price stability and, subject to this, to support the government's economic objectives including those for growth and employment. 17. Sensex comprises of ..... stocks A) 30. B) 40. C) 50. D) 60. Show Answer Correct Answer: A) 30. 18. The technique of spreading funds over a large number of investments to reduce the portfolio's overall risk is known as A) Diversification. B) Mutual funds. C) Bear markets. D) Pension plans. Show Answer Correct Answer: A) Diversification. 19. Which of the following is a characteristic of a bond? A) It represents ownership in a company. B) It typically pays interest over time. C) It has no maturity date. D) It is always risk-free. Show Answer Correct Answer: B) It typically pays interest over time. 20. Junk bonds usually have low ratings because ..... A) They are not risky investments. B) They are a high-risk investment. C) They have a low rate of return. D) They have a low risk of default. Show Answer Correct Answer: B) They are a high-risk investment. 21. When you deposit $ 50 in currency at Old National Bank A) Its assets increase by less than $ 50 because of reserve requirements. B) Its reserves increase by less than $ 50 because of reserve requirements. C) Its liabilities increase by $ 50. D) Its liabilities decrease by $ 50. Show Answer Correct Answer: C) Its liabilities increase by $ 50. 22. The best rating a bond can receive A) D. B) AAA. C) AA. D) B. Show Answer Correct Answer: B) AAA. 23. A customer buys 100 shares of TCS @ Rs. 2408 per share and sells all of them back the same day at Rs. 2512. How does he settle trades for the day? A) He shall receive Rs.10, 400 from the stock exchange. B) He shall pay Rs.10, 400 to the stock exchange. C) He shall pay Rs. 240, 800 to the stock exchange. D) He shall receive Rs.251, 200 from the stock exchange. Show Answer Correct Answer: A) He shall receive Rs.10, 400 from the stock exchange. 24. It is the number assigned to each transaction by the Stock Exchange and is printed on the contract note. A) PAN number. B) Unique order code. C) Contract note. D) None of the above. Show Answer Correct Answer: B) Unique order code. 25. In free cash flow valuation, depreciation is added back because it is: A) A cash inflow. B) A tax payment. C) A non-cash accounting expense. D) An investment expenditure. Show Answer Correct Answer: C) A non-cash accounting expense. ← 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