This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. FULL FORM OF C.D.S.L IS A) CENTRAL DEPOSITORY SERVICES LIMITED. B) CENTRAL DEPOSITORY SECURITIES LIMITED. C) CENTRAL DEMATERIALISED SECURITIES LIMITED. D) NONE OF THE ABOVE. Show Answer Correct Answer: A) CENTRAL DEPOSITORY SERVICES LIMITED. 2. Primary and Secondary Markets A) Control each other. B) Compete with each other. C) Complement each other. D) Function independently. Show Answer Correct Answer: C) Complement each other. 3. Collects funds from savers and invests the funds in loans and other financial assets A) Secondary market. B) Investment objective. C) Financial intermediary. D) Primary market. Show Answer Correct Answer: C) Financial intermediary. 4. ..... stocks are commonly traded on exchange. A) Preference. B) Unlisted. C) Common. D) Listed. Show Answer Correct Answer: D) Listed. 5. Buying stock in a company means that you become a partial ..... of that business. A) Lender. B) Stockbroker. C) Owner. D) Customer. Show Answer Correct Answer: C) Owner. 6. All of the following are examples of financial intermediaries EXCEPT A) A finance company. B) A stock certificate. C) A credit union. D) A life insurance company. Show Answer Correct Answer: B) A stock certificate. 7. What is the best option for workers who want to save for the future by annually depositing a portion of their income in a tax-sheltered financial asset? A) Treasury bills. B) Treasury bonds. C) IRA. D) Treasury notes. Show Answer Correct Answer: C) IRA. 8. The Apex Body who controls the Capital Market of our country is A) RBI. B) SBI. C) SEBI. D) None of the above. Show Answer Correct Answer: C) SEBI. 9. Who are the major investors in capital market A) Treasury Department. B) Insurance companies. C) Individual Investors. D) Government Agencies. Show Answer Correct Answer: B) Insurance companies. 10. A type of market where traders can trade at any time when the market is open. Buyers and sellers continuously place their orders and are matched on a continuous basis A) Continuous Market. B) Financial Market. C) Bond Market. D) Call Market. Show Answer Correct Answer: A) Continuous Market. 11. The annual rate of return on a bond if the bond were held to maturity. A) Interest. B) Yield. C) Return. D) Par value. Show Answer Correct Answer: B) Yield. 12. Companies that sell shares of a portfolio of securities are known as A) Mutual funds. B) Pension plans. C) Bear markets. D) Discount brokerage firms. Show Answer Correct Answer: A) Mutual funds. 13. ..... is the organisations, institutions that provide long term funds A) Money Market. B) Capital market. C) Primary Market. D) Secondary Market. Show Answer Correct Answer: B) Capital market. 14. What is the function of IBFIM A) Shariah Advisories. B) Rating agency. C) Wealth management services. D) None of above. Show Answer Correct Answer: A) Shariah Advisories. 15. The term of the Treasury Bill cannot be more than ..... year. A) Ten. B) Two. C) One. D) Five. Show Answer Correct Answer: C) One. 16. Which of the following is the method of collecting capital? A) Public Issue. B) Offer for Sale. C) Private Placement. D) All the above. Show Answer Correct Answer: D) All the above. 17. Fraud and other illegal activity e.g. several major banks have been involved in market rigging A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 18. This equilibrium price demand and supply of money is called ..... A) Conversion rate. B) Exchange rate. C) Interest rate. D) None of above. Show Answer Correct Answer: B) Exchange rate. 19. Date when Makati Stock Exchange established A) May 05, 1963. B) May 15, 1963. C) May 05, 1936. D) May 15, 1936. Show Answer Correct Answer: D) May 15, 1936. 20. A level of performance that describes using the least amount of input to achieve the highest amount of output. A) Efficiency. B) Liquidity. C) Commodity. D) Market. Show Answer Correct Answer: A) Efficiency. 21. How much do you feel bored in the class? A) Very much. B) Not at all. C) 10-30%. D) More than 50%. Show Answer Correct Answer: B) Not at all. 22. In primary markets, property of shares which made it easy to sell newly issued security is considered as A) Decreased liquidity. B) Increased liquidity. C) Money Flow. D) Large funds. Show Answer Correct Answer: B) Increased liquidity. 23. A marketable document of title to a time deposit for a specified period may be referred to as a ..... A) Certificate of Deposit. B) Government Securitites. C) Commercial Bill. D) Treasury Bill. Show Answer Correct Answer: A) Certificate of Deposit. 24. ..... are short-term loans in which Treasury bills serve as collateral. A) Federal funds. B) Negotiable certificates of deposit. C) U.S. government agency securities. D) Repurchase agreements. Show Answer Correct Answer: D) Repurchase agreements. 25. ..... is an agreement to buy or sell at a specific date in the future at a predetermined price A) Bond. B) Futures contract. C) Equities. D) Savings. Show Answer Correct Answer: B) Futures contract. 26. Which of the following are the instruments of money market? A) Call money. B) Certificate of deposits. C) Trade bills. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. Processing accurately all shareholder transactions is a role of a A) Commercial Bank. B) Transfer Agent. C) Dealer. D) Broker. Show Answer Correct Answer: B) Transfer Agent. 28. Any item that is widely accepted in exchange for the goods and services offered to consumers in a given market. A) Store of value. B) Medium of exchange. C) Greenbacks. D) Unit of account. Show Answer Correct Answer: B) Medium of exchange. 29. When securities are allotted to institutional investors & some selected individuals is referred to as ..... A) Offer for sale. B) Offer through prospectus. C) Initial public offer. D) Private placement. Show Answer Correct Answer: D) Private placement. 30. Financial market ..... financial assets. A) Creates. B) Exchange. C) Creates and Exchange. D) None of the above. Show Answer Correct Answer: C) Creates and Exchange. Next →Related QuizzesFinance QuizzesEconomics QuizzesFinancial Markets Quiz 2Financial Markets Quiz 3Financial Markets Quiz 4Financial Markets Quiz 5Financial Markets Quiz 6Financial Markets Quiz 7Financial Markets Quiz 8Financial Markets Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books