This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. WHICH OF THE FOLLOWING TERM, IS NOT RELATED TO STOCK EXCHANGE A) STAG. B) BULL. C) BEAR. D) LION. Show Answer Correct Answer: D) LION. 2. Two issues that play a major role in setting an investment objective. A) Time and results. B) Time and income. C) Diversification and return. D) Risk and return. Show Answer Correct Answer: B) Time and income. 3. If a company is already in liquidity crunch and flotation costs of the issue would be high. What kind of instrument will be appoints for the money market. A) Commercial paper. B) COD. C) Treasury Bill. D) Commercial Bills. Show Answer Correct Answer: A) Commercial paper. 4. . ..... is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities. A) Government Securities. B) Shares. C) Derivatives. D) Mutual Funds. Show Answer Correct Answer: D) Mutual Funds. 5. An ideal Capital market is one A) Where market operations are inconsistent. B) Must provide insufficient information to investors. C) Which facilitates economic growth. D) Where finance is available at higher cost. Show Answer Correct Answer: C) Which facilitates economic growth. 6. Which agency regulates and supervises NBFCs? A) Finance Ministry. B) Respective state government. C) RBI. D) SEBI. Show Answer Correct Answer: C) RBI. 7. Type of bonds that pay coupon interest are classified as A) Forward bond. B) Interest bonds. C) Payment bonds. D) Coupon bond. Show Answer Correct Answer: D) Coupon bond. 8. Which of these would be an example of an underlying asset for a derivative? A) Commodity. B) Real estate. C) Cash and cash equivalents. D) Inventories. Show Answer Correct Answer: A) Commodity. 9. Raj Enterprises wishes to invest ₹ 1, 10, 000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund? A) 7. B) 2. C) 4. D) 6. Show Answer Correct Answer: C) 4. 10. Treasury Bills Commands ..... A) High Liquidity. B) Low Liquidity. C) Limited Liquidity. D) Medium Liquidity. Show Answer Correct Answer: A) High Liquidity. 11. Term that refers to the total value of all a company's shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. A) Market Capitalization. B) Market Diversification. C) Market Volatility. D) Market Socialization. Show Answer Correct Answer: A) Market Capitalization. 12. A treasury bill is basically: A) An instrument to borrow long term funds. B) An instrument to borrow short term funds. C) An instrument of capital marker. D) None of above. Show Answer Correct Answer: B) An instrument to borrow short term funds. 13. Which of the following financial organizations specializes in buying installment contracts from merchants who sell on credit? A) A credit union. B) An insurance company. C) A bank. D) A finance company. Show Answer Correct Answer: D) A finance company. 14. A major player in the money market is the ..... A) Central Bank. B) Reserve Bank of India. C) Commercial Bank. D) State Bank of India. Show Answer Correct Answer: C) Commercial Bank. 15. Which type of financial organization is a nonprofit service cooperative A) Mutual fund. B) Insurance company. C) Commercial bank. D) Credit union. Show Answer Correct Answer: D) Credit union. 16. What is the present value of the following payment stream, discounted at 11% annually:$ 3, 000 at the end of year 1, $ 4, 000 at the end of year 3, and $ 6, 000 at the end of year 5? A) $ 9, 473.67. B) $ 9, 694.67. C) $ 9, 764.17. D) $ 9, 188.18. Show Answer Correct Answer: D) $ 9, 188.18. 17. Exchange markets and over counter markets are considered as two types of A) Primary market. B) Floating market. C) Risky market. D) Secondary market. Show Answer Correct Answer: D) Secondary market. 18. Which of the following are NOT the functions of bank treasurer. A) Manage liability. B) Manage cash. C) Manage risk exposure. D) Manage foreign currency rate. Show Answer Correct Answer: D) Manage foreign currency rate. 19. Stock exchange is known as ..... market for securities. A) Primary Market. B) Secondary Market. C) Capital Market. D) None of These. Show Answer Correct Answer: B) Secondary Market. 20. Treasury bills are also known as: A) Fixed interest Bonds. B) Zero-Coupon Bonds. C) Low-Interest Bonds. D) Flat Rate Bonds. Show Answer Correct Answer: B) Zero-Coupon Bonds. 21. ..... is a link between savers & borrowers, helps to establish a link between savers & investors A) Marketing. B) Financial Market. C) Money Market. D) None of These. Show Answer Correct Answer: B) Financial Market. 22. SENSEX is the index of A) BSE. B) NSE. C) Singapore Stock Exchange. D) None. Show Answer Correct Answer: A) BSE. 23. ..... IS NOT THE EXAMPLE OF FLOATATION COSTS A) UNDERWRITER COMMISSION. B) BROKERAGE. C) COST OF CAPITAL. D) LEAGAL AND REGISTRATION FEES. Show Answer Correct Answer: C) COST OF CAPITAL. 24. The use of income today that allows for greater production in the future. A) Secondary market. B) Investment. C) Savings. D) Risk. Show Answer Correct Answer: C) Savings. 25. Which of the following markets deals in securities with maturity of less than one year. A) Capital market. B) Money market. C) Secondary market. D) Primary market. Show Answer Correct Answer: B) Money market. 26. How many companies comprise the Bombay Stock Exchange 'Sensex'? A) 40. B) 50. C) 30. D) 20. Show Answer Correct Answer: C) 30. 27. The return you get for purchasing stocks comes in the form of: A) Coupon. B) Face value. C) Dividends. D) None of above. Show Answer Correct Answer: C) Dividends. 28. Regulation is likely to have some drawbacks and regulators can be vulnerable to regulatory capture. 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. 29. What is the interest rate on a bond called? A) Discount rate. B) Coupon rate. C) Par value. D) Maturity rate. Show Answer Correct Answer: B) Coupon rate. 30. What is a bank position when it has less cash holding? A) Shortage position. B) Long position. C) Short position. D) Square position. Show Answer Correct Answer: C) Short position. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesFinancial Markets Quiz 1Financial Markets Quiz 2Financial Markets Quiz 3Financial Markets Quiz 4Financial Markets Quiz 5Financial Markets Quiz 6Financial Markets Quiz 7Financial Markets Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books