This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 65 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 65 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Constructed to match or track the stocks of a market measure, such as the S&P 500, Dow, or Nasdaq. It also offers a good degree of diversification. A) Hedge Fund. B) Index Fund. C) All the above. D) None of the above. Show Answer Correct Answer: B) Index Fund. 2. Which of the following has NOT resulted from more active liability management on the part of banks? A) Increased bank holdings of cash items. B) Aggressive targeting of goals for asset growth by banks. C) Increased use of negotiable CDs to raise funds. D) An increased proportion of bank assets held in loans. Show Answer Correct Answer: A) Increased bank holdings of cash items. 3. LPG policy in India was initiated by Prime Minister ..... A) Indira Gandhi. B) Rajiv Ggandhi. C) Manmohan Singh. D) P. V. Narasimha Rao. Show Answer Correct Answer: D) P. V. Narasimha Rao. 4. What is the primary focus of the term structure of interest rates? A) Comparison of market yields. B) Analysis of stock prices. C) Evaluation of inflation rates. D) Study of currency values. Show Answer Correct Answer: A) Comparison of market yields. 5. Which type of bond is issued by a state or local government to finance public projects? A) Corporate bond. B) Treasury bond. C) Municipal bond. D) Savings bond. Show Answer Correct Answer: C) Municipal bond. 6. What are the SEBI guidelines related to financial markets? A) SEBI guidelines ensure transparency, protect investors, regulate market intermediaries, and set disclosure norms for listed companies. B) SEBI guidelines eliminate the need for financial disclosures by companies. C) SEBI guidelines promote unregulated trading practices and insider trading. D) SEBI guidelines focus solely on tax regulations for individuals. Show Answer Correct Answer: A) SEBI guidelines ensure transparency, protect investors, regulate market intermediaries, and set disclosure norms for listed companies. 7. Which of the following is a type of primary financial market? A) Stock Market. B) Bond Market. C) Money Market. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. What is the date that a bond comes due called? A) Redemption date. B) Issuance date. C) Coupon date. D) Maturity date. Show Answer Correct Answer: D) Maturity date. 9. Which of the following is NOT a function of the Snap Quote window? A) Show real-time trading volumes. B) Display detailed data on a single security. C) Provide quick access to information without navigating through the Market Watch. D) Display a list of securities of interest. Show Answer Correct Answer: D) Display a list of securities of interest. 10. What are commodities, and how are they traded in financial markets? A) Commodities are basic goods traded in financial markets, often through futures contracts and ETFs. B) Commodities are digital assets traded exclusively on social media platforms. C) Commodities are luxury items traded only in physical stores. D) Commodities are services offered by financial advisors in exchange for fees. Show Answer Correct Answer: A) Commodities are basic goods traded in financial markets, often through futures contracts and ETFs. 11. With a 10% reserve requirement ratio, a $ 100 deposit into New Bank means that the maximum amount New Bank could lend is A) $ 90. B) $ 100. C) $ 10. D) $ 110. Show Answer Correct Answer: A) $ 90. 12. What is the role of credit ratings in the bond market? A) Credit ratings are used to set interest rates for loans. B) Credit ratings influence the stock market performance. C) Credit ratings determine the maturity dates of bonds. D) Credit ratings help assess the risk of bond investments, influencing yields and investor decisions. Show Answer Correct Answer: D) Credit ratings help assess the risk of bond investments, influencing yields and investor decisions. 13. If a trader wants to instantly see the details of a security without adding it to the Market Watch, which window should they use? A) Inquiry Window. B) Snap Quote. C) Order/Trade Window. D) Message Window. Show Answer Correct Answer: B) Snap Quote. 14. How do financial intermediaries reduce transaction costs? A) By providing loans only to large corporations. B) By increasing interest rates for borrowers. C) By pooling resources, providing expertise, and efficiently matching borrowers and lenders. D) By eliminating all fees associated with transactions. Show Answer Correct Answer: C) By pooling resources, providing expertise, and efficiently matching borrowers and lenders. 15. The Company's estimated Earnings Per Share is USD 10. The company made a bonus issue of 1 for 4. What will be the estimated EPS after the bonus share issue. A) USD 10. B) USD 12. C) USD 2.5. D) USD 8.00. Show Answer Correct Answer: D) USD 8.00. 16. The 'rate at which money circulates' is also known as its: A) Density. B) Velocity. C) Liquidity. D) Scarcity. Show Answer Correct Answer: B) Velocity. 17. What is the difference between a Traditional and Roth IRA? A) A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest. B) A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in. C) All the above. D) None of the above. Show Answer Correct Answer: A) A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest. 18. Securities Exchange Board of India (SEBI) was established in ..... A) 2001. B) 1956. C) 1988. D) 1984. Show Answer Correct Answer: C) 1988. 19. What does fintech primarily drive in the financial sector? A) Digital transformation. B) Reduced consumer access. C) Increased regulatory complexity. D) Higher transaction fees. Show Answer Correct Answer: A) Digital transformation. 20. Why is saving money important? A) It allows you to spend more freely. B) It guarantees instant wealth. C) Saving money is important for financial security and achieving future goals. D) It eliminates all financial risks. Show Answer Correct Answer: C) Saving money is important for financial security and achieving future goals. 21. How do bonds differ from stocks? A) Bonds are loans to issuers; stocks represent ownership in a company. B) Bonds are equity investments; stocks are fixed-income securities. C) Bonds are shares in a company; stocks are debts owed by issuers. D) Bonds provide dividends; stocks offer interest payments. Show Answer Correct Answer: A) Bonds are loans to issuers; stocks represent ownership in a company. 22. Ather Energy raised IPO funds primarily for: A) Buying foreign companies. B) Manufacturing & R&D expansion. C) Launching crypto tokens. D) Printing their own currency. Show Answer Correct Answer: B) Manufacturing & R&D expansion. 23. A credit union ..... A) Is a financial institution that focuses on taking deposits and using them to fund mortgages. B) Is a non-profit institution owned by its members and provides financial services to its members. C) Offers a broad range of deposit account and gives loans to individuals and businesses. D) Is a financial institution for students only. Show Answer Correct Answer: B) Is a non-profit institution owned by its members and provides financial services to its members. 24. Which best describes what generally occurs in financial markets? A) Assets are traded. B) I have no idea. C) All the above. D) None of the above. Show Answer Correct Answer: A) Assets are traded. 25. If investors speculate in derivative contracts rather than in the underlying asset, they will probably achieve ..... returns, and they are exposed to relatively ..... risk. A) Higher lower. B) Lower lower. C) Higher higher. D) Lower higher. Show Answer Correct Answer: C) Higher higher. ← 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