This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 7 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a characteristic of savings bond? A) They are issued by the government. B) They can be used to help pay for public works project. C) They are sold in low denominations. D) They carry a high risk. Show Answer Correct Answer: D) They carry a high risk. 2. How do money markets differ from capital markets? A) Money markets regulate the financial sector, while capital markets provide loans to governments. B) Money markets trade in short-term assets, while capital markets deal with long-term assets. C) Capital markets trade exclusively in foreign currencies, while money markets do not. D) Money markets are for private transactions only, while capital markets are open to the public. Show Answer Correct Answer: B) Money markets trade in short-term assets, while capital markets deal with long-term assets. 3. Economic Value Added (EVA) measures value by calculating: A) Net profit minus dividends. B) Operating profit minus interest. C) NOPAT minus cost of capital. D) Cash flow minus depreciation. Show Answer Correct Answer: C) NOPAT minus cost of capital. 4. Which of the following is a primary function of financial markets? A) To control inflation. B) To promote foreign trade. C) To facilitate the transfer of funds between savers and borrowers. D) To collect taxes. Show Answer Correct Answer: C) To facilitate the transfer of funds between savers and borrowers. 5. What is the main benefit of investing in a Commodity ETF? A) Guaranteed returns. B) Ownership of physical commodities. C) Easy access to a diverse range of commodities. D) Higher taxes. Show Answer Correct Answer: C) Easy access to a diverse range of commodities. 6. The primary market is concerned with: A) Trading existing securities. B) Raising new capital. C) Speculating on share prices. D) Hedging foreign exchange risk. Show Answer Correct Answer: B) Raising new capital. 7. Which risk is associated with the inability to sell a security at its fair-market value quickly? A) Default risk. B) Liquidity risk. C) Inflation risk. D) Special provisions. Show Answer Correct Answer: B) Liquidity risk. 8. Collects funds from savers and invests the funds in loans and other financial assets A) Investment objective. B) Secondary market. C) Primary market. D) Financial intermediary. Show Answer Correct Answer: D) Financial intermediary. 9. What is the strategy of holding different kinds of investments to minimize risk? A) Financial system. B) Portfolio diversification. C) Capital market. D) Primary market. Show Answer Correct Answer: B) Portfolio diversification. 10. In a(n) ..... , people who specialize in buying and selling stock represent the interests of a company without the company actually getting involved. A) OTC market. B) Primary market. C) Bear market. D) Secondary market. Show Answer Correct Answer: D) Secondary market. 11. LTCG on equity mutual funds post-Budget 2024 is applicable at? A) 10% above ₹ 1 lakh. B) 12.5% above ₹ 1.25 lakh. C) 15% above ₹ 2 lakh. D) 20% above ₹ 1 lakh. Show Answer Correct Answer: B) 12.5% above ₹ 1.25 lakh. 12. What term describes a bond price excluding interest accrued since the last payment? A) Clean Price. B) Dirty Price. C) Accrued Interest. D) Spot Price. Show Answer Correct Answer: A) Clean Price. 13. Which one is NOT a capital market instrument? A) Equity shares. B) Corporate bonds. C) Treasury Bills. D) Preference shares. Show Answer Correct Answer: C) Treasury Bills. 14. The money invested in the call money market provides high liquidity with ..... A) Low Profitability. B) High Profitability. C) Limited Profitability. D) Medium Profitability. Show Answer Correct Answer: A) Low Profitability. 15. Educating the investor is the ..... function of SEBI. A) Protective. B) Regulatory. C) Both the above. D) Developmental. Show Answer Correct Answer: A) Protective. 16. The Ex-dividend date of a company is 27$^{th}$ September 2022, when should you buy the stock to receive the dividend: A) 27$^{th}$ September 2022. B) 25$^{th}$ September 2022. C) 28$^{th}$ September 2022. D) 29th September 2022. Show Answer Correct Answer: B) 25$^{th}$ September 2022. 17. Global market in convertible currencies are traded and their conversion rates are determined. A) Foreign Exchange Market. B) Equity Market. C) Auction Market. D) Debt Market. Show Answer Correct Answer: A) Foreign Exchange Market. 18. It is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year A) Primary market. B) Secondary market. C) Capital market. D) Money market. Show Answer Correct Answer: D) Money market. 19. The financial instrument which is related to money market is A) Equity share. B) Certificate of deposit. C) Debentures. D) Bonds. Show Answer Correct Answer: B) Certificate of deposit. 20. Which of the following is an example of a capital market instrument? A) .S. Treasury bills. B) Banker's acceptance. C) Preferred stocks. D) Stock options. Show Answer Correct Answer: C) Preferred stocks. 21. What is an organized venue for trading stock and other securities? A) Brokerage firm. B) Stock exchange. C) Bank. D) Investment club. Show Answer Correct Answer: B) Stock exchange. 22. What are derivatives in financial markets? A) Derivatives are financial instruments that derive their value from an underlying asset. B) Derivatives are stocks that represent ownership in a company. C) Derivatives are cash instruments that do not depend on any underlying asset. D) Derivatives are fixed-income securities that pay a set interest rate. Show Answer Correct Answer: A) Derivatives are financial instruments that derive their value from an underlying asset. 23. What does the acronym IPO stand for in the context of financial markets? A) Internal Public Offering. B) Initial Public Offering. C) Initial Price Offering. D) International Public Offering. Show Answer Correct Answer: B) Initial Public Offering. 24. Financial intermediaries A) Accept funds from savers to make loans to investors. B) Help the federal government manage the economy. C) Provide financial assistance to low-income families. D) Track data on international trading between various countries. Show Answer Correct Answer: A) Accept funds from savers to make loans to investors. 25. Which of the following is a short-term financial goal? A) Saving for college. B) Saving for the prom. C) Saving for a house. D) Saving to open a business. Show Answer Correct Answer: B) Saving for the prom. ← 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 8Class 12 Business Studies Chapter 10 Financial Markets Quiz 9Class 12 Business Studies Chapter 10 Financial Markets Quiz 10Class 12 Business Studies Chapter 10 Financial Markets Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books