This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is a market for converting the currency of one country into another country. A) The capital market. B) The foreign exchange market. C) The financial market. D) None of above. Show Answer Correct Answer: B) The foreign exchange market. 2. The market for new issue shares is known as ..... A) Primary market. B) Secondary market. C) Stock exchange. D) Money market. Show Answer Correct Answer: A) Primary market. 3. The interest rate paid on a bond A) Par Value. B) Capital gain. C) Coupon rate. D) Bond premium. Show Answer Correct Answer: C) Coupon rate. 4. Which of the following is an example of the secondary market? A) Boller Nation. B) SEC. C) IPO. D) NYSE. Show Answer Correct Answer: D) NYSE. 5. Stock that is paid first and offers no voting rights A) Preferred stock. B) Stock exchange. C) Common stock. D) Primary stock. Show Answer Correct Answer: A) Preferred stock. 6. Instruments with a maturity period less than one year are traded in: A) Capital market. B) Stock exchange. C) Money market. D) NSEI. Show Answer Correct Answer: C) Money market. 7. NBFC does not Include A) Agriculture activity. B) Sale of Immovable property. C) Industrial Activity. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Private Consumption $ 800; Government Spending $ 300; Gross Investment $ 100; Exports $ 80 and Imports $ 50. What is the GDP? * A) $ 1200. B) $ 1330. C) $ 1230. D) $ 1280. Show Answer Correct Answer: C) $ 1230. 9. Which product is most likely to have a higher fee: A) Direct mutual fund. B) Index fund. C) Passive fund. D) Regular mutual fund. Show Answer Correct Answer: D) Regular mutual fund. 10. One of 12 regional banks established to maintain reserves, issue bank notes, and lend money to member banks. A) Federal Reserve Bank. B) Central Bank. C) Member Banks. D) National Bank. Show Answer Correct Answer: A) Federal Reserve Bank. 11. One of the harmful practices in financial securities whereas "hot" IPO issues were allocated to directors and executives. A) Asking kickback. B) Bias Recommendation. C) Fraudulent investment. D) Spinning. Show Answer Correct Answer: D) Spinning. 12. To meet floatation cost, firms generally issue the following instrument of moneymarket. A) Call Money. B) Commercial Paper. C) Treasury Bill. D) Commercial Bill. Show Answer Correct Answer: B) Commercial Paper. 13. What is NOT a government bond? A) Junk. B) Treasury bill. C) Municipal. D) Savings. Show Answer Correct Answer: A) Junk. 14. This financial instrument is related to money market A) Equity shares. B) Certificate of deposit. C) Bonds. D) Debentures. Show Answer Correct Answer: B) Certificate of deposit. 15. The allocated function is performed by A) Financial market. B) Capital market. C) Money market. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. The spot exchange rate is the rate at which a foreign exchange dealer converts one currency into another currency on a ..... A) Year. B) Week. C) Day. D) None of above. Show Answer Correct Answer: C) Day. 17. The exchange of goods or services without the use of money as currency. A) Money. B) Specie. C) Barter. D) Fiat Money. Show Answer Correct Answer: C) Barter. 18. This Is a basic good used in commerce that is interchangeable with other commodities of the same type A) Commodity. B) Eurobond. C) Liquid Asset. D) Dividend. Show Answer Correct Answer: A) Commodity. 19. What forces determine stock prices? A) Supply and Demand. B) Corporations and Partnerships. C) Government Regulations. D) Gravity and Friction. Show Answer Correct Answer: A) Supply and Demand. 20. Why do companies issue stocks? A) To create and investment opportunity into other businesses. B) To increase employee cooperation and an operating level. C) To be traded individually. D) To raise money for economic investment and to fund operating costs. Show Answer Correct Answer: D) To raise money for economic investment and to fund operating costs. 21. Financial Institutions can better bear the risk of mismatching the maturities of their assets and liabilities. A) Monitoring Costs. B) Maturity Intermediation. C) Denomination Intermediation. D) Credit Allocation. Show Answer Correct Answer: B) Maturity Intermediation. 22. To conclude, does islamic finance achieve the ultimate objective of shariah A) Ambiguous depend on the way the development is conceptualised. B) No because the the inequality still rising. C) Yes because the muslim can use the halal financing. D) None of above. Show Answer Correct Answer: A) Ambiguous depend on the way the development is conceptualised. 23. Which institution was the first Indian public sector bank to set up its investment banking division in 1972? A) IDBI. B) ICICI. C) PNB. D) SBI. Show Answer Correct Answer: D) SBI. 24. All of the following belong in M1 except? A) Bills. B) Coins. C) Checking Accounts. D) Saving Accounts. Show Answer Correct Answer: D) Saving Accounts. 25. This term refers to how easily an asset can be converted to cash: A) Eurobond. B) Currency. C) Liquidity. D) Commodity. Show Answer Correct Answer: C) Liquidity. 26. The IMF provided funds in 2008 to help Iceland support its banks and stabilise its currency. 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. 27. ..... the dollars that become available for investors to use when others refrain from consuming A) Bond. B) Savings. C) Risk. D) Equities. Show Answer Correct Answer: B) Savings. 28. Global market in convertible currencies are traded and their conversion rates are determined. A) Foreign Exchange Market. B) Equity Market. C) Debt Market. D) Auction Market. Show Answer Correct Answer: A) Foreign Exchange Market. 29. Money market deals in ..... A) Medium-term securities. B) Short term Securities. C) Long term Securities. D) None of these. Show Answer Correct Answer: B) Short term Securities. 30. ....is an institution or arrangement that facilitates the exchange of financial instruments. A) Financial market. B) Capital market. C) Unorganised sector. D) Organised sector. Show Answer Correct Answer: A) Financial market. ← 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