This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 64 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 64 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The main link between financial system and economic development is: A) Encouraging imports. B) Mobilizing savings for investment. C) Increasing taxes. D) Promoting subsidies. Show Answer Correct Answer: B) Mobilizing savings for investment. 2. The proportion of debt in the overall capital is also called ..... A) Capital Structure. B) Financial Leverage. C) Trading On equity. D) Cost of funds. Show Answer Correct Answer: B) Financial Leverage. 3. Suku bunga rendah (biaya pinjaman) memicu pertumbuhan di ..... A) Pasar modal internasional. B) Pasar modal nasional. C) Pasar ekuitas internasional. D) Pasar obligasi internasional. Show Answer Correct Answer: D) Pasar obligasi internasional. 4. "Bull Market" A) A period of time during which stock prices are falling. B) A period of time during which stock prices are rising. C) The network of structures that allows for the transfer of money between savers and investors. D) Making high-risk investments with borrowed money. Show Answer Correct Answer: B) A period of time during which stock prices are rising. 5. What is the Short-Term Capital Gains (STCG) tax on listed equity shares after Budget 2024? A) 10%. B) 15%. C) 20%. D) 12.5%. Show Answer Correct Answer: C) 20%. 6. Additional measures of bank performance include A) ROA and ROE. B) ROA, ROE and the NIM (net interest margin). C) ROE and the NIM. D) None of the above. Show Answer Correct Answer: B) ROA, ROE and the NIM (net interest margin). 7. Presently TB are issued of the following maturity: A) 91 day. B) 182 day. C) 364 day. D) All the above. Show Answer Correct Answer: D) All the above. 8. What is a potential danger of herd mentality in markets? A) It leads to a decrease in market volatility. B) Investors may become too cautious. C) Markets become too predictable. D) Prices can skyrocket due to irrational exuberance. Show Answer Correct Answer: D) Prices can skyrocket due to irrational exuberance. 9. Which of the following is the most suitable option for an investor with low risk appetite? A) Junk Bonds. B) Equities. C) Fixed Deposits. D) Derivatives. E) Not Attempted. Show Answer Correct Answer: C) Fixed Deposits. 10. ..... is a part of capital market. A) Call Money. B) Primary Market. C) Secondary Market. D) Primary and Secondary Market. Show Answer Correct Answer: D) Primary and Secondary Market. 11. What is the role of the money market in the economy? A) The money market provides liquidity, facilitates short-term borrowing and lending, and helps manage interest rates in the economy. B) The money market regulates long-term investments and capital gains. C) The money market is primarily focused on real estate transactions and mortgages. D) The money market serves as a platform for trading stocks and bonds. Show Answer Correct Answer: A) The money market provides liquidity, facilitates short-term borrowing and lending, and helps manage interest rates in the economy. 12. Why would a government be a borrower in the financial markets? A) To buy a house. B) To fund a budget deficit. C) To fund a budget surplus. D) To increase taxes. Show Answer Correct Answer: B) To fund a budget deficit. 13. Nifty index is used in ..... A) Derivatives. B) Index Funds. C) Exchange Traded Funds (ETFs). D) All of the above. E) Not Attempted. Show Answer Correct Answer: D) All of the above. 14. What is the role of a broker in financial markets? A) A broker is responsible for managing a company's finances. B) A broker only provides investment advice to clients. C) The role of a broker in financial markets is to facilitate transactions between buyers and sellers. D) A broker acts as a financial advisor without executing trades. Show Answer Correct Answer: C) The role of a broker in financial markets is to facilitate transactions between buyers and sellers. 15. If Interest rates goes down A) Bond prices goes up. B) Bond prices goes down. C) Bond prices remain same. D) None of the above. Show Answer Correct Answer: A) Bond prices goes up. 16. ..... maintain a larger amount of assets in aggregate than the other types of non-depository institutions A) Mutual funds. B) Finance companies. C) Securities firms. D) Life insurance companies. Show Answer Correct Answer: A) Mutual funds. 17. Assume you have $ 1, 000 and plan to travel from the United States to the United Kingdom. Assume further that the bank's bid rate for the British pound is $ 1.52 and its ask rate is $ 1.60. Before leaving on your trip, you go to this bank to exchange dollars for pounds. How much of $ 1, 000 will be converted into pounds? A) 725 pounds. B) 625 pounds. C) 825 pounds. D) 925 pounds. Show Answer Correct Answer: B) 625 pounds. 18. The government controls can affect the exchange rates, except from the following statements A) Imposing foreign exchange barriers. B) Imposing foreign trade barriers. C) Intervening (buying and selling currencies) in the foreign exchange markets. D) Affecting micro variables such as inflation, interest rates, and income levels. Show Answer Correct Answer: D) Affecting micro variables such as inflation, interest rates, and income levels. 19. A key function of the capital market is the provision of: A) Short-term working capital. B) Capital for permanent long-term investments. C) Liquidity for daily transactions. D) Emergency funds for individuals. Show Answer Correct Answer: B) Capital for permanent long-term investments. 20. Distribusi dari modal suatu perusahaan diantara hutang dengan ekuitas disebut dengan ..... A) Equity Structure. B) Capital Structure. C) Debt Structure. D) Financial Structure. Show Answer Correct Answer: B) Capital Structure. 21. A forward exchange rate is a rate relating to A) Past interest rate. B) Spot interest rate. C) Future interest rate. D) Currency exchange rate. Show Answer Correct Answer: D) Currency exchange rate. 22. The difference between Treasury bonds and Treasury bills is that A) Bonds have the longest maturity, and bills have the shortest. B) Bills have the longest maturity, and bonds have the shortest. C) Bonds is another name for treasury notes, while bills are different. D) Bills is another name for treasury notes, while bonds are different. Show Answer Correct Answer: A) Bonds have the longest maturity, and bills have the shortest. 23. The financial system of a country consists of: A) Financial institutions. B) Financial markets. C) Financial instruments. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. T+2 settlement cycle in a stock exchange means, the trade is settled ..... days after the trade. A) 1 day. B) Same day as the trade. C) 2 days. D) 3 days. E) Not Attempted. Show Answer Correct Answer: C) 2 days. 25. When $ 1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to make any loans but to hold excess reserves instead, then, in the bank's final balance sheet A) The assets at the bank increase by $ 1 million. B) The liabilities of the bank decrease by $ 1 million. C) Reserves increase by $ 200, 000. D) Liabilities increase by $ 200, 000. Show Answer Correct Answer: A) The assets at the bank increase by $ 1 million. ← 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