This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 66 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The time and resources spent trying to exchange goods and services are called A) Transaction costs. B) Barter costs. C) Contracting costs. D) Bargaining costs. Show Answer Correct Answer: A) Transaction costs. 2. In which of the companies will you expect a high asset turnover: A) Retail companies. B) Infrastructure companies. C) Power companies. D) Heavy machinery companies. Show Answer Correct Answer: A) Retail companies. 3. What is the interest rate paid on a bond called? A) Yield rate. B) Coupon rate. C) Market rate. D) Face value. Show Answer Correct Answer: B) Coupon rate. 4. Investors who are voting owners in the company. They have one vote per share of the stock they own. A) Capital market. B) Common stock. C) Preferred stock. D) Original owners. Show Answer Correct Answer: B) Common stock. 5. Which sentence describe the risk and returns of investing in stocks? A) They offer the lowest risk and the lowest potential returns. B) They offer the highest risks and the highest potential returns. C) They offer the lowest risk, but the highest potential returns. D) They offer the highest risks, but the lowest possible returns. Show Answer Correct Answer: B) They offer the highest risks and the highest potential returns. 6. What is an arbitrage opportunity? A) A chance to buy a stock. B) A price discrepancy that allows for risk-free profit. C) A loan offered by a bank. D) A type of insurance. Show Answer Correct Answer: B) A price discrepancy that allows for risk-free profit. 7. Individuals, corporations, and governments can be either savings deficit units or savings surplus units. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 8. Which of the following includes investors as actual voting owners of the company? A) Income stock. B) Common stock. C) Growth stock. D) Preferred stock. Show Answer Correct Answer: B) Common stock. 9. The share of checkable deposits in total bank liabilities has A) Expanded moderately over time. B) Expanded dramatically over time. C) Shrunk over time. D) Remained virtually unchanged since 1960. Show Answer Correct Answer: C) Shrunk over time. 10. What is a municipal bond? A) A loan from a bank. B) A debt security issued by local governments. C) A type of corporate stock. D) A type of mutual fund. Show Answer Correct Answer: B) A debt security issued by local governments. 11. What is the word for the person or bank that lends someone money A) Capital. B) Borrower. C) Principal. D) Creditor. Show Answer Correct Answer: D) Creditor. 12. What does "bid" mean? A) Bid is the lowest price currently offered to sell a stock. B) Bid is the highest price currently offered to buy a stock. C) Bid refers to the total number of shares available for purchase. D) Bid is the average price of a stock over the last month. Show Answer Correct Answer: B) Bid is the highest price currently offered to buy a stock. 13. Imagine you are a trader at a bustling trading center. This center has established rules and regulations, and it's where traders like you meet to trade futures contracts and options in commodities and financial instruments. What is this place called? A) Futures Market. B) Spot Market. C) Equity Market. D) Commodity Market. Show Answer Correct Answer: A) Futures Market. 14. An IPO refers to: A) Initial Public Offering. B) Initial Public Offering. C) Institutional Price Offer. D) Investment Purchase Option. Show Answer Correct Answer: A) Initial Public Offering. 15. Venture capital guidelines in India are regulated by ..... A) RBI. B) SBI. C) Stock Exchange. D) SEBI. Show Answer Correct Answer: D) SEBI. 16. In the context of financial markets, what does the term 'liquidity' refer to? A) The ability to convert assets into cash quickly without significant loss in value. B) The amount of cash a company holds on its balance sheet. C) The rate at which interest accumulates on a loan. D) The ability of a company to pay its long-term debts. Show Answer Correct Answer: A) The ability to convert assets into cash quickly without significant loss in value. 17. Assume the Canadian dollar is equal to $ 0.88 and the Peruvian nuevos soles is equal to $ 0.35. The value of the Peruvian nuevos soles in Canadian dollars is: A) About 0.3621 Canadian dollars. B) About 0.3977 Canadian dollars. C) About 0, 236 Canadian dollars. D) About 2.51 Canadian dollars. Show Answer Correct Answer: B) About 0.3977 Canadian dollars. 18. The money market is a financial market for trading in: A) Long-term financial assets. B) Short-term financial assets. C) Real estate. D) Commodities like gold and oil. Show Answer Correct Answer: B) Short-term financial assets. 19. Which type of investment is primarily used to hedge against inflation? A) Stocks. B) Municipal bonds. C) Commodities. D) Treasury bonds. Show Answer Correct Answer: C) Commodities. 20. Which of the following is NOT one of the benefits of investing in an online brokerage firm? A) Cheaper/less fees. B) Easier to navigate/understand. C) Advice from stockbrokers. D) None of the above. Show Answer Correct Answer: C) Advice from stockbrokers. 21. What is the primary role of the Securities Exchange commission? A) To ensure the money supply. B) To protect investors. C) To establish interest rates. D) To manage the national economy. Show Answer Correct Answer: B) To protect investors. 22. What type of securities are ordinary shares traded on the ASX? A) Debt securities. B) Equity securities. C) Government securities. D) Derivative securities. Show Answer Correct Answer: B) Equity securities. 23. The following statements are true regarding the credit analysis EXCEPT A) Return to equity. B) Repayment. C) Return to investment. D) Risk bearing ability. Show Answer Correct Answer: A) Return to equity. 24. Who among the following can invest in the Debt market? A) Financial Institutions. B) Retail Investors. C) Mutual Funds. D) All of the above. E) Not Attempted. Show Answer Correct Answer: D) All of the above. 25. Apa yang dimaksud dengan istilah gharar yang dilarang dalam sistem perbankan syariah? A) Segala bentuk perjudian. B) Ketidakpastian atau ketidakjelasan dalam transaksi. C) Pembagian keuntungan secara tidak adil. D) Penerimaan bunga dari pinjaman. Show Answer Correct Answer: B) Ketidakpastian atau ketidakjelasan dalam transaksi. ← 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