This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 71 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 71 (15 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. With a ..... , the savings of many individuals are pooled together and invested in a variety of stocks, bonds, and other financial assets. A) Mutual fund. B) Municipal bond. C) Call option. D) None of the above. Show Answer Correct Answer: A) Mutual fund. 2. Debt Instrument are issued by Corporate Houses are raising short term financial resources from the money market are called ..... A) Treasury Bills. B) Commercial Paper. C) Certificate of Deposit. D) Government Securities. Show Answer Correct Answer: B) Commercial Paper. 3. Profits made from investments are reported as ..... A) Capital Gains. B) Capital Losses. C) Bull Markets. D) Bear Markets. Show Answer Correct Answer: A) Capital Gains. 4. Financial market participants who provide funds are called A) Surplus units. B) Primary units. C) Deficit units. D) Secondary units. Show Answer Correct Answer: A) Surplus units. 5. Financial assets are generically classified into two broad categories: A) Debt & Equity. B) Bonds and deposits. C) Real estate & gold. D) Equity & gold. Show Answer Correct Answer: A) Debt & Equity. 6. ..... represents claim for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend A) Financial Asset. B) Physical asset. C) Cash asset. D) None of these. Show Answer Correct Answer: A) Financial Asset. 7. Starx Enterprises stock is currently RM26.50 per share. You expect that earnings next year will be RM2 per share and it should pay a RM1 dividend. You find that the P/E multiple is 15 times on average. Determine the stock price you would expect for the company. A) RM30.00. B) RM15.00. C) RM13.50. D) RM35.00. Show Answer Correct Answer: A) RM30.00. 8. What is the main purpose of foreign exchange controls imposed by a government? A) To encourage foreign investments. B) To stabilize the local currency and manage the balance of payments. C) To increase domestic production. D) To simplify international trade processes. Show Answer Correct Answer: B) To stabilize the local currency and manage the balance of payments. 9. What is the main risk associated with investing in commodity ETFs? A) Lack of diversification. B) High management fees. C) Price volatility of underlying commodities. D) Illiquidity of the ETF shares. Show Answer Correct Answer: C) Price volatility of underlying commodities. 10. This institution requires you to be a member A) Banks. B) Credit Unions. C) Savings and Loans. D) Payday Loan Company. Show Answer Correct Answer: B) Credit Unions. 11. Which of the following statements is not true with regard to stock exchange? A) It provides a platform for buying and selling of new securities. B) It curbs the marketability of the securities. C) By providing a ready market, it extends liquidity to the securities. D) It provides a platform for buying and selling of old securities. Show Answer Correct Answer: B) It curbs the marketability of the securities. 12. What is the main advantage of the Snap Quote window? A) It provides detailed data on multiple securities at once. B) It allows quick access to information on a single security without navigating away from the current screen. C) It allows placing orders. D) It provides real-time updates on market prices only. Show Answer Correct Answer: B) It allows quick access to information on a single security without navigating away from the current screen. 13. A sinking fund contains funds set aside by the issuer of a bond to pay for the redemption of the bond when it matures. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 14. When the bank deducts the interest in advance, it is ..... A) Deposit-taking. B) Interest-bearing. C) Changing value. D) Discounting. Show Answer Correct Answer: D) Discounting. 15. Which of the following reasons is not responsible for the ups and downs in the Sensex? A) Rain. B) Monetary Policy. C) Political instability. D) None of the above. Show Answer Correct Answer: D) None of the above. ← PreviousRelated 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