This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The system that allows the transfer of money between savers and borrowers. A) Financial system. B) Financial intermediaries. C) Mutual funds. D) None of above. Show Answer Correct Answer: A) Financial system. 2. The minimum period till which an equity investment must be retained in order to qualify as Long Term is: A) 4 year. B) 3 year. C) 2 year. D) 1 year. Show Answer Correct Answer: D) 1 year. 3. What type of lender charges the highest interest rates? A) Credit unions. B) Finance companies. C) Commercial banks. D) S & L associations. Show Answer Correct Answer: B) Finance companies. 4. Money market Institutions are ..... A) Investment Houses. B) Mortgage Banks. C) Reserve Bank of India. D) Commercial Banks and Discount Houses. Show Answer Correct Answer: D) Commercial Banks and Discount Houses. 5. Debt instruments issued by corporate houses for raising short term financial resources from the money market are called A) Commercial Paper. B) Government Securities. C) Treasury Bills. D) Certificate of Deposits. Show Answer Correct Answer: A) Commercial Paper. 6. A major player in the money market is A) Commercial Bank. B) Reserve Bank. C) Financial Institutions. D) Brokers and underwriters. Show Answer Correct Answer: A) Commercial Bank. 7. How many companies are included in the SENSEX of India? A) 30. B) 25. C) 50. D) 111. Show Answer Correct Answer: A) 30. 8. In the parlance of economy/commerce, what is "gilt-edged" market? A) Gold and silver market. B) Industrial securities market. C) Market for safe (such as government) securities. D) Market for software technology/ service products. Show Answer Correct Answer: C) Market for safe (such as government) securities. 9. Stocks that trade via OTC or typically ..... A) Smaller companies. B) Middle size companies. C) Larger companies. D) None of above. Show Answer Correct Answer: A) Smaller companies. 10. Regulator of Secondary market is A) IRDAI. B) PFRDA. C) SEBI. D) RBI. Show Answer Correct Answer: C) SEBI. 11. Which of the following performs the functions of giving imputes to saving andtransfer them to more productive uses? A) Financial Institutions. B) Wholesale Market. C) Financial Market. D) Retail Market. Show Answer Correct Answer: C) Financial Market. 12. People make money by discounting bonds, how? A) The interest rate. B) Buying the Bond for less than the other person paid for it. C) The value of the Bond increased. D) The company's rating dropped. Show Answer Correct Answer: B) Buying the Bond for less than the other person paid for it. 13. Money pooled from small investors and used to purchase government or corporate bonds A) Secondary market fund. B) Money market mutual fund. C) Interest. D) Investment. Show Answer Correct Answer: B) Money market mutual fund. 14. ..... is the market where the existing securities of companies are traded. A) Primary market. B) Secondary market. C) Money market. D) None of these. Show Answer Correct Answer: B) Secondary market. 15. An example of a primary market A) Boller Nation. B) SEC. C) NYSE. D) IPO. Show Answer Correct Answer: D) IPO. 16. The following is not a participant on the interbank money market A) Brokers. B) CIMB Bank. C) Central bank. D) Bank investors. Show Answer Correct Answer: D) Bank investors. 17. Money market where debit and stocks are traded and maturity period is more than a year is classified as A) Short term markets. B) Long term markets. C) Capital market. D) None of these. Show Answer Correct Answer: C) Capital market. 18. ..... stocks that represent ownership shares in corporations A) Equities. B) Capital market. C) Futures contract. D) Secondary market. Show Answer Correct Answer: A) Equities. 19. The amount that a bond issuer promises to pay the buyer at maturity. A) Return. B) Par value. C) Coupon rate. D) Capital gain. Show Answer Correct Answer: B) Par value. 20. Derivatives are usually ..... instruments, which increases their potential risks and rewards. A) Uncertain. B) Hazardous. C) Leveraged. D) Long lasting. Show Answer Correct Answer: C) Leveraged. 21. You need a new computer, and you will need a loan in order to buy one. which lender is most likely to charge you the highest interest rate on your loan? A) Savings and loan association. B) Savings bank. C) Credit union. D) Finance company. Show Answer Correct Answer: D) Finance company. 22. Which of the following is the prominent risk in forward contract? A) Counterparty risk. B) Market risk. C) Interest rate risk. D) Inflation risk. Show Answer Correct Answer: A) Counterparty risk. 23. An investment bank helps ..... issue securities A) A Corporation. B) Government. C) Foreign governments. D) None of above. Show Answer Correct Answer: A) A Corporation. 24. Which stock exchange will trade OTC stocks? A) AMEX. B) NYSE. C) SEC. D) NASDAQ. Show Answer Correct Answer: D) NASDAQ. 25. What is the best example of an action(s) that the Federal Reserve (Fed) can take to stabilize our economy? A) Print money. B) Raise interest rates. C) Require other banks to keep a minimum balance. D) All of the above. Show Answer Correct Answer: D) All of the above. 26. A monetary system that backs its currency with a reserve of gold, and allows currency holders to convert their currency into gold. A) Reserves. B) Foreclosures. C) Gold standard. D) Fiat Money. Show Answer Correct Answer: C) Gold standard. 27. In primary markets, first time issued shares to be publicly traded, in stock markets is considered as A) Issuance offering. B) Traded offering. C) Initial public offering. D) Public markets. Show Answer Correct Answer: C) Initial public offering. 28. Issued by Federal Reserve Banks to handle sudden increases in the demand for currency in a particular area. A) Federal Reserve Note. B) Specie. C) Monetary Policy. D) Check Clearing. Show Answer Correct Answer: A) Federal Reserve Note. 29. In Nepal, the institution which buys or sells equities on his own account directly through the exchange is called ..... A) Stock broker. B) Broker agent. C) Financial advisor. D) Stock dealer. Show Answer Correct Answer: D) Stock dealer. 30. A forward contract is an agreement to buy or sell an underlying asset at some time in the ....., at a price agreed upon ..... A) Future; forward. B) Spot; forward. C) Spot; today. D) Future; today. Show Answer Correct Answer: D) Future; today. ← 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