This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 68 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 68 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Type of financial security which have linked payoff to another issued security is classified as A) Linked security. B) Derivative security. C) Payable security. D) Non-issuing security. Show Answer Correct Answer: B) Derivative security. 2. Oldest Stock Market in India A) Bombay. B) Calcutta. C) Delhi. D) None of the above. Show Answer Correct Answer: A) Bombay. 3. Using the Standard & Poor's index to gauge bond quality, which of the following symbols correctly identifies the highest investment grade? A) AAA. B) Aaa. C) C. D) D. Show Answer Correct Answer: A) AAA. 4. How do financial markets help individuals and companies? A) By providing entertainment. B) By raising funds and investing savings. C) By offering educational services. D) By manufacturing products. Show Answer Correct Answer: B) By raising funds and investing savings. 5. What is the market strategy that favors trying to find stocks that are undervalued in the market? A) Value investing. B) Buy and holding. C) Investing for growth. D) Market timing. Show Answer Correct Answer: A) Value investing. 6. ....is an institution or arrangement that facilitates the exchange of financial instruments. A) Financial market. B) Capital market. C) Organised sector. D) Unorganised sector. Show Answer Correct Answer: A) Financial market. 7. What is a significant driver of asset bubbles and market crashes? A) Innovations in technology. B) Low interest rates. C) Herd instinct. D) Government regulations. Show Answer Correct Answer: C) Herd instinct. 8. ..... refers to the time at which payment to a bondholder is due. A) Par value. B) Coupon rate. C) Maturity. D) None of the above. Show Answer Correct Answer: C) Maturity. 9. XW Group Company planned to expand its business. Therefore it sold new shares below market price to raise money as well as to give existing shareholders the priority to purchase the shares.Which type of shares is mentioned in the above example? A) A Bonus shares. B) B Blue chips. C) C Rights issues. D) D Preference shares. Show Answer Correct Answer: C) C Rights issues. 10. FINRA regulates: A) Investment Advisors. B) Financial Advisors. C) Stock Brokers. D) All Options are Correct. Show Answer Correct Answer: D) All Options are Correct. 11. How do financial institutions contribute to economic stability? A) They primarily focus on maximizing profits. B) They have no impact on the overall economy. C) They only provide loans to large corporations. D) Financial institutions contribute to economic stability by providing security for savings, facilitating resource allocation, offering credit, managing risks, and supporting monetary policy. Show Answer Correct Answer: D) Financial institutions contribute to economic stability by providing security for savings, facilitating resource allocation, offering credit, managing risks, and supporting monetary policy. 12. An account that pays interest on a specific sum of money that a person has deposited for a specific period of time. If withdrawn before that time, the bank imposes a penalty fee. A) Savings Account. B) Certificate of Deposit (CD). C) Checking Account. D) Money Market Account. Show Answer Correct Answer: B) Certificate of Deposit (CD). 13. When stock prices decrease as investors fear their ability to make a profit A) Bull Market. B) Bear Market. C) All the above. D) None of the above. Show Answer Correct Answer: B) Bear Market. 14. Who pays interest on a loan A) A lender. B) A borrower. C) A credit union. D) A creditor. Show Answer Correct Answer: B) A borrower. 15. A ..... is an option to buy shares of stock at a specified time in the future. A) Call option. B) Portfolio. C) Bear market. D) None of the above. Show Answer Correct Answer: A) Call option. 16. The price paid to have. a policy on a monthly basis A) Savings. B) Premium. C) Cost. D) None of the above. Show Answer Correct Answer: B) Premium. 17. The Nigerian Stock Exchange was formerly known as: A) The Abuja Stock Exchange. B) The West African Stock Exchange. C) The Lagos Stock Exchange. D) The National Securities Exchange. Show Answer Correct Answer: C) The Lagos Stock Exchange. 18. ..... is an agreement to buy or sell at a specific date in the future at a predetermined price A) Equities. B) Futures contract. C) Bond. D) Savings. Show Answer Correct Answer: B) Futures contract. 19. Why are investment bankers interested in money markets? A) For trading crypto. B) For short-term funding & corporate treasury solutions. C) For issuing life insurance. D) For retail UPI payments. Show Answer Correct Answer: B) For short-term funding & corporate treasury solutions. 20. What happens to commodity prices if there is a bad harvest? A) They go down. B) They remain the same. C) They go up. D) They become worthless. Show Answer Correct Answer: C) They go up. 21. Economic liberalisation in India was initiated in ..... A) 1990. B) 1991. C) 1992. D) 1993. Show Answer Correct Answer: B) 1991. 22. The two main dealers on the stock exchange are: A) Buyers and Sellers. B) Banks and Insurance Companies. C) Stock Brokers and Jobbers. D) Investors and Speculators. Show Answer Correct Answer: C) Stock Brokers and Jobbers. 23. Holders of equity have claims on both income and assets that are secondary to the claims of creditors. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 24. Which regulatory body is responsible for advising the Treasurer on financial issues? A) The NSW Treasury. B) The Commonwealth Treasury. C) The RBA. D) The CFR. Show Answer Correct Answer: B) The Commonwealth Treasury. 25. What is the importance of regulation in financial markets? A) Regulation promotes monopolies and limits competition in markets. B) Regulation increases market volatility and uncertainty. C) Regulation is unnecessary for investor confidence and growth. D) Regulation is important for stability, investor protection, fair practices, and preventing fraud in financial markets. Show Answer Correct Answer: D) Regulation is important for stability, investor protection, fair practices, and preventing fraud in financial markets. ← 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