This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 62 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 62 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. After the trade has been executed, the broker issues a Contract Note to the investor within A) 52 hours. B) 24 hours. C) 48 hours. D) 12 hours. Show Answer Correct Answer: B) 24 hours. 2. Which of the following is required to invest in stock markets? A) PAN card. B) Adhar Card. C) D-mat account. D) Saving account. Show Answer Correct Answer: C) D-mat account. 3. Which of the following is a derivative security? A) Common stock. B) Treasury bond. C) Call option. D) Municipal bond. Show Answer Correct Answer: C) Call option. 4. If the quantity of money (M) increases, and V and T remain constant, then: A) P will decrease. B) P will increase. C) P will remain constant. D) V will decrease. Show Answer Correct Answer: B) P will increase. 5. The Second-Tier Securities Market was established in: A) 1960. B) April 1985. C) 2000. D) 1990. Show Answer Correct Answer: B) April 1985. 6. What is the primary benefit of investing in index funds? A) They guarantee high returns. B) They provide diversification at a low cost. C) They are actively managed by professionals. D) They are risk-free investments. Show Answer Correct Answer: B) They provide diversification at a low cost. 7. These are companies have a market cap between $ 300 million to $ 2 billion. A) Micro-cap. B) Nano-cap. C) Small-cap. D) Mid-cap. Show Answer Correct Answer: C) Small-cap. 8. What is the London Interbank Offer Rate (LIBOR)? A) The interest rate for government bonds. B) The rate banks charge each other for loans. C) The rate for personal loans. D) The rate for currency exchange. Show Answer Correct Answer: B) The rate banks charge each other for loans. 9. What is a common type of life insurance policy? A) Whole life insurance. B) Universal life insurance. C) Variable life insurance. D) Term life insurance. Show Answer Correct Answer: D) Term life insurance. 10. What are the Dow Jones and S&P 500? A) Averages of stocks & bonds that are traded often. B) Indexes that track the sales of all real estate transactions within the U.S. C) Indexes that show the performance of limited but representative stocks. D) Cumulative records of all stocks sold on the NYSE & other major exchanges. Show Answer Correct Answer: C) Indexes that show the performance of limited but representative stocks. 11. Higher interest rates encourage ..... A) Savers to save more. B) Borrowers to borrow more. C) All the above. D) None of the above. Show Answer Correct Answer: A) Savers to save more. 12. Market for selling financial assets that can only be redeemed by the original holder. A) Primary market. B) Secondary market. C) All the above. D) None of the above. Show Answer Correct Answer: A) Primary market. 13. An important financial institution that assists in the initial sale of securities in the primary market is? A) Commercial bank. B) Investment bank. C) Stock exchange. D) Brokerage house. Show Answer Correct Answer: B) Investment bank. 14. Tujuan pasar modal internasional adalah, kecuali ..... A) Mengurangi biaya uang untuk peminjam. B) Menambah relasi dengan pengusaha. C) Memperluas penyediaan uang bagi peminjam. D) Mengurangi resiko bagi pemberi pinjaman. Show Answer Correct Answer: B) Menambah relasi dengan pengusaha. 15. Mengapa saham dianggap lebih berisiko dibandingkan obligasi? A) Karena saham selalu memberikan dividen. B) Karena pemegang saham memiliki prioritas lebih tinggi dari pemegang obligasi. C) Karena dividen tidak selalu pasti dan kenaikan harga saham tidak dijamin. D) Karena saham tidak bisa dijual. Show Answer Correct Answer: C) Karena dividen tidak selalu pasti dan kenaikan harga saham tidak dijamin. 16. For calculating book value:what is considered? A) Only tangible assets. B) Tangible + intangible assets. C) Tangible assets+ future value of these assets. D) None of the above. Show Answer Correct Answer: A) Only tangible assets. 17. Capital appreciation refers to A) The increased value of an asset. B) The decreased value of an asset. C) All the above. D) None of the above. Show Answer Correct Answer: A) The increased value of an asset. 18. COMPUTATION:The bond has a face value of 500, 000 with an interest of 50, 000. The prevailing value of the bond in the market is 700, 000. How much is the rate of capital gain or return? A) 10%. B) 40%. C) 50%. D) 30%. Show Answer Correct Answer: C) 50%. 19. What does FDI stand for in financial markets? A) Foreign Depository Investment. B) Foreign Direct Investment. C) Federal Development Investment. D) Financial Debt Investment. Show Answer Correct Answer: B) Foreign Direct Investment. 20. ..... is defined as an action taken today that will create benefits in the future. A) Diversification. B) Yield. C) Investment. D) None of the above. Show Answer Correct Answer: C) Investment. 21. What is the primary function of the foreign exchange market? A) To regulate international trade. B) To issue new stocks. C) To facilitate currency conversion. D) To provide loans to businesses. Show Answer Correct Answer: C) To facilitate currency conversion. 22. You are a financial advisor whose client wants stocks that pay regular dividends. You advise him to buy A) Income stock. B) Common stock. C) Preferred stock. D) Growth stock. Show Answer Correct Answer: A) Income stock. 23. When a corporation sells common stock to the general public for the first time is called? A) Initial public offering. B) Secondary market. C) Common stock. D) Preferred stock. Show Answer Correct Answer: A) Initial public offering. 24. In a ..... , many investors sell their stocks in anticipation of lower profits. A) Mutual fund. B) Capital gain. C) Bear market. D) None of the above. Show Answer Correct Answer: C) Bear market. 25. ..... is the process of stripping a currency unit of its status as a legal tender A) Monetization. B) Demonetization. C) Currency war. D) Inflation. Show Answer Correct Answer: B) Demonetization. ← 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