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Class 12 Business Studies Chapter 10 Financial Markets Quiz 9 (25 MCQs)

Quiz Instructions

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1. What type of market has a physical location and is used by large corporations for equity trading?
2. What does the term 'liquidity' refer to in financial markets?
3. Imagine you are an investor looking for a market where you can trade debt instruments such as government and corporate bonds, and also deal with packaged loan products that are sold to investors. Which market would you be involved in?
4. What is an organisation that takes money from households or firms and lends it to other households or firms?
5. A jobber quotes two prices:a high price for selling and a lower price for:
6. 10) What is it called when you loss money on stocks you have purchased.
7. At 10% annual inflation rate, an item costing Rs. 100 today, would cost Rs ..... after two year.
8. Secondary markets help support primary markets because secondary markets I. offer primary market purchasers liquidity for their holdings. II. update the price or value of the primary market claims. III. reduce the cost of trading the primary market claims.
9. Which of the following statements is not true with regard to capital market?
10. Banks may borrow from or lend to another bank in the Federal Funds market. A loan of excess reserves from one bank to another bank is recorded as a(n) ..... for the borrowing bank and a(n) ..... for the lending bank.
11. What is the difference between spot markets and future markets?
12. Which of the following is not a reason for the need for debt securitization? A) Liquidity improvementB) Risk transfer C) Interest rate control D) Capital adequacy compliance
13. Government securities carry practically no risk of ..... and, hence, are called risk-free or gilt-edged instruments
14. It is where real property (property with more or less permanent life-like land, buildings, and big machinery) is used to guarantee or secure big loans.
15. What is an initial public offering (IPO)?
16. A network of savers, investors, financial assets, and financial institutions that work together to transfer savings to investment uses
17. The NASDAQ is where all trading happens
18. Treasury Bills are issued in the form ..... note
19. Which rate of return accounts for intra-year compounding?
20. The semi-strong form of EMH states that share prices reflect:
21. The price band in book building is decided by .....
22. Which is of these is not a way in which retail banks raise finance?
23. Large Cap Stocks means
24. In which type of market do investors trade previously issued securities, like stocks or bonds?
25. Your security analysis indicated that the company has lot of potential for growth in the futures. You decided to purchase the shares of the particular company with a long-term investment target. Your investment strategy can be recognized as
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