This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 70 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a foreign bond? A) A bond that is not regulated. B) A bond sold outside the borrower's country and denominated in the local currency. C) A bond issued in the issuer's home country. D) A bond issued by international organizations. Show Answer Correct Answer: B) A bond sold outside the borrower's country and denominated in the local currency. 2. Clearing and settlement operations of NSE are carried out by: A) CDSL. B) SBI. C) NSDL. D) NSCCL. Show Answer Correct Answer: D) NSCCL. 3. The lending of money to another party, involving an agreement ot repay the temporary loan is ..... A) Currency. B) Debt. C) Liquidity. D) Credit. E) Cash rate. Show Answer Correct Answer: D) Credit. 4. The settlement cycle in NSE is: A) T+2. B) T+5. C) T+1. D) T+3. Show Answer Correct Answer: A) T+2. 5. How do insurance companies contribute to economic development? A) Insurance firms mainly invest in real estate and luxury goods. B) Insurance companies primarily focus on marketing and sales strategies. C) Insurance companies enhance economic stability and growth by providing risk management, encouraging investments, and facilitating financial security. D) Insurance providers are responsible for setting government policies. Show Answer Correct Answer: C) Insurance companies enhance economic stability and growth by providing risk management, encouraging investments, and facilitating financial security. 6. The markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as A) Financial instruments. B) Financial asset markets. C) Physical asset markets. D) Easy markets. Show Answer Correct Answer: B) Financial asset markets. 7. Which of the following are securities? A) A certificate of deposit. B) A share of Vinatex Danang Joint Stock Company common stock. C) A treasury bill. D) All three choices provided. Show Answer Correct Answer: D) All three choices provided. 8. Primary market is a market where securities are traded in the A) First Time. B) Second Time. C) Three Time. D) Several Times. Show Answer Correct Answer: A) First Time. 9. Zero coupon bonds are redeemed at the A) Discount. B) Face value. C) Premium. D) None of the above. Show Answer Correct Answer: B) Face value. 10. Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time. A) Withdrawing. B) Depositing. C) Time Value of Money. D) Investing. Show Answer Correct Answer: D) Investing. 11. Identify the method of floatation in Primary Market:Karro Limited has decided to sell its entire new issue of shares to a mutual funds company. A) Private Placement. B) Rights issue. C) Offer for Sale. D) Offer through Prospectus. Show Answer Correct Answer: A) Private Placement. 12. What does "SEC" stand for? A) Southeastern Conference. B) Securities and Energy Commission. C) Stock Market and Exchange Commission. D) Securities and Exchange Commission. Show Answer Correct Answer: D) Securities and Exchange Commission. 13. What is considered to be the safest type of bond? A) Corporate Bond. B) Treasury Bond. C) Municipal Bond. D) Convertible Bonds. Show Answer Correct Answer: B) Treasury Bond. 14. Money market securities have all the following characteristics except they are not A) Short term. B) Money. C) Low risk. D) Very liquid. Show Answer Correct Answer: B) Money. 15. What is it called when many different types of stock are pooled together? A) Mutual fund. B) Index fund. C) Bond. D) Stock. Show Answer Correct Answer: A) Mutual fund. 16. The Council of Financial Regulators is: A) Made up of five regulatory bodies. B) The final decision-maker on financial reforms. C) Responsible for implementing new financial laws. D) A non-statutory body. Show Answer Correct Answer: D) A non-statutory body. 17. Assuming an efficient market with no surprise information, the most likely impact on the share price of a company after paying dividend will be: A) The price of the share must increase by the same amount of dividend paid. B) The price of the share must remain unchanged. C) The price of the share must decrease by the same amount of dividend paid. D) The price must increase irrespective of the divided paid or not. Show Answer Correct Answer: C) The price of the share must decrease by the same amount of dividend paid. 18. Amount paid for money borrowed or lent. A) Discount. B) Interest. C) Security. D) Bond. Show Answer Correct Answer: B) Interest. 19. Inter bank fund requirement in the short run is met by A) Certificate of deposit. B) Call money. C) Treasury bill. D) Commercial bill. Show Answer Correct Answer: B) Call money. 20. What are the two methods of issuing securities in the primary market? A) Direct listing and auction. B) Initial coin offering and crowdfunding. C) Bond issuance and stock buyback. D) Public offering and private placement. Show Answer Correct Answer: D) Public offering and private placement. 21. Market price of a stock is the price at which the stock would sell if all investors had all knowable information about a stock. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 22. Typically, the interest rate on corporate bonds will be ..... the more restrictions are placed on management through restrictive covenants, because ..... A) Higher; corporate earnings will be limited by the restrictions. B) Higher; the bonds will be considered safer by bondholders. C) Lower; the bonds will be considered safer by buyers. D) Lower; corporate earnings will be higher with more restrictions in place. Show Answer Correct Answer: C) Lower; the bonds will be considered safer by buyers. 23. The network of savers, investors, financial institutions, and financial assets is known as the A) Stockbroker. B) Equities market. C) Credit Union. D) Financial system. Show Answer Correct Answer: D) Financial system. 24. Which one is these is a capital market instrument? A) Certificate of Deposit. B) Commercial Bill. C) Bonds. D) Commercial Paper. Show Answer Correct Answer: C) Bonds. 25. Pembelian dan penjualan seketika mata uang di pasar yang berbeda untuk mendapatkan keuntungan disebut ..... A) Hedging. B) Konversi mata uang. C) Arbitrase mata uang. D) Spekulasi mata uang. Show Answer Correct Answer: C) Arbitrase mata uang. ← 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