This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 67 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 67 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When the general price level rises, real money balances: A) Increase. B) Decrease. C) Stay the same. D) Become irrelevant. Show Answer Correct Answer: B) Decrease. 2. The shares to be issued by the company that must not exceed the total amount stated in its Articles of Incorporation. A) Preference Share. B) Ordinary Share. C) Authorized Capital Stock. D) Treasury Share. Show Answer Correct Answer: C) Authorized Capital Stock. 3. Call money, treasury bill, C.R., etc are the instruments of A) Capital Market. B) Money market. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: B) Money market. 4. Paper Gain/Loss or Realized Gain/Loss-A gain/loss is a paper gain until the sale of the stock-then it is realized. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 5. Which product benefits most in a falling interest rate cycle? A) FD. B) Liquid funds. C) Long-duration G-Secs. D) Gold ETF. Show Answer Correct Answer: C) Long-duration G-Secs. 6. Which institution regulates the capital market in India? A) RBI. B) SEBI. C) NABARD. D) SIDBI. Show Answer Correct Answer: B) SEBI. 7. The process of indirect finance using financial intermediaries is called A) Financial intermediation. B) Financial liquidation. C) Disintermediation. D) Resource allocation. E) Direct lending. Show Answer Correct Answer: A) Financial intermediation. 8. Which of the following best describes a financial market? A) A place where goods and services are exchanged. B) A venue where savers and borrowers are connected. C) A location for government policy discussions. D) A platform for online retail sales. Show Answer Correct Answer: B) A venue where savers and borrowers are connected. 9. The headquarters of SEBI is located in: A) Delhi. B) Kolkata. C) Mumbai. D) Chennai. Show Answer Correct Answer: C) Mumbai. 10. What is the significance of liquidity in financial markets? A) High liquidity always leads to higher profits. B) Liquidity is significant because it ensures efficient market functioning, enables quick transactions, and reduces price volatility. C) Liquidity is only important for large investors. D) Liquidity has no impact on market stability. Show Answer Correct Answer: B) Liquidity is significant because it ensures efficient market functioning, enables quick transactions, and reduces price volatility. 11. An institution that helps to bring savers, borrowers, and financial assets together is a A) Financial intermediary. B) Financial market. C) Primary market. D) Secondary market. Show Answer Correct Answer: A) Financial intermediary. 12. They issue stock to boost their capital base and they also manage trust funds that usually contain stocks. A) Commercial Banks. B) Savings Bank. C) Insurance Companies. D) Pension Funds. Show Answer Correct Answer: A) Commercial Banks. 13. If a U.S. firm is receiving 100, 000 euros in 90 days and wishes to avoid the risk from exchange rate fluctuations, it could: A) Purchase a 90-day forward contract on euros. B) Sell a 90-day forward contract on euros. C) Purchase euros 90 days from now at the spot rate. D) Sell euros 90 days from now at the spot rate. Show Answer Correct Answer: B) Sell a 90-day forward contract on euros. 14. Which of the following windows displays trading information for a list of selected securities? A) Inquiry Window. B) Snap Quote. C) Order/Trade Window. D) Market Watch Window. Show Answer Correct Answer: D) Market Watch Window. 15. Which of the following terms describes a strong stock market? A) Bear market. B) Bull market. C) Futures market. D) Spot market. Show Answer Correct Answer: B) Bull market. 16. The SEC was created in response to what event? A) President Roosevelt's New Deal. B) Creation of the New York Stock Exchange. C) The Stock Market Crash of 1929. D) WWI. Show Answer Correct Answer: C) The Stock Market Crash of 1929. 17. The largest percentage of banks' holdings of securities consist of A) Treasury and government agency securities. B) Tax-exempt municipal securities. C) State and local government securities. D) Corporate securities. Show Answer Correct Answer: A) Treasury and government agency securities. 18. Call money or call loans are ..... A) Fixed. B) Liquid. C) Costly. D) Cheap. Show Answer Correct Answer: B) Liquid. 19. Companies that sell shares of a portfolio of securities are known as A) Pension plans. B) Mutual funds. C) Discount brokerage firms. D) Bear markets. Show Answer Correct Answer: B) Mutual funds. 20. If a client buys shares worth Rs. 2, 25, 000 and sells shares worth Rs. 75, 000 through a broker, then the maximum brokerage payable to the broker is ..... A) Rs. 7500. B) Rs. 6000. C) Rs. 6500. D) Rs. 8000. E) Not Attempted. Show Answer Correct Answer: A) Rs. 7500. 21. An increase in inflation typically leads to: A) Lower interest rates. B) Higher interest rates. C) No change in interest rates. D) A decrease in stock prices. Show Answer Correct Answer: B) Higher interest rates. 22. What is a currency swap? A) A method of currency speculation. B) A type of forward contract. C) The simultaneous purchase and sale of foreign exchange for two different dates. D) The exchange of currencies at the current rate. Show Answer Correct Answer: C) The simultaneous purchase and sale of foreign exchange for two different dates. 23. ..... protection is the major responsibility of SEBI. A) Broker. B) Agent. C) Investor. D) Trustee. Show Answer Correct Answer: C) Investor. 24. A treasury bill is also known as a ..... A) T-Bill. B) Gov-bill. C) State-bill. D) G-Bill. Show Answer Correct Answer: A) T-Bill. 25. Apa perbedaan utama antara pasar uang dan pasar modal? A) Pasar uang berfokus pada instrumen jangka panjang, sedangkan pasar modal pada instrumen jangka pendek. B) Pasar uang menyediakan pembiayaan untuk perusahaan, sedangkan pasar modal tidak. C) Pasar uang berfokus pada instrumen jangka pendek, sedangkan pasar modal pada instrumen jangka panjang. D) Pasar uang dan pasar modal tidak memiliki perbedaan. Show Answer Correct Answer: C) Pasar uang berfokus pada instrumen jangka pendek, sedangkan pasar modal pada instrumen jangka panjang. ← 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