This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the term describing an overall decrease in stock prices? A) Market capitalization. B) Market diversification. C) A bull market. D) A bear market. Show Answer Correct Answer: D) A bear market. 2. Canary Isle is small country where the government injected $ 500 m into the economy to keep the exchange rate at a determined value. Identify this exchange rate regime. A) Mixed. B) Managed. C) Fixed. D) Flexible. Show Answer Correct Answer: C) Fixed. 3. What is the current central banking system of the United States called? A) 1st Bank of the United States. B) National Bank. C) Federal Reserve System. D) Federal Deposit Insurance Corporation (FDIC). Show Answer Correct Answer: C) Federal Reserve System. 4. Financial Markets facilitates business firms to A) Increase Sales. B) Minimise fund requirements. C) Recruit workers. D) Raise funds. Show Answer Correct Answer: D) Raise funds. 5. Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach? A) B. Primary market. B) C. Financial markets. C) Money market. D) A. Secondary market. Show Answer Correct Answer: D) A. Secondary market. 6. The minimum period till which a debt instrument must be retained in order to qualify as Long Term is: A) 1 year. B) 3 year. C) 4 year. D) 2 year. Show Answer Correct Answer: B) 3 year. 7. What kind of fund collects and invests income for later payments to eligible recipients? A) Pension fund. B) Insurance fund. C) Credit union fund. D) Mutual fund. Show Answer Correct Answer: A) Pension fund. 8. A market that is involved in the trading of debt instruments such as government and corporate bonds, as well as has an involvement with the trading of packaged loan products that are sold to investors. A) Over-the-counter Market. B) Equity Market. C) Debt Market. D) Auction Market. Show Answer Correct Answer: C) Debt Market. 9. Less regulation in the financial markets helped banks to be more profitable. 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. 10. Training of intermediaries of the securities market is ..... function of SEBI. A) Regulatory function. B) Development function. C) Protective function. D) None of the above. Show Answer Correct Answer: B) Development function. 11. THE TWO PARTS OF CAPITAL MARKET ARE A) MONEY MARKET AND STOCK MARKET. B) PRIMARY MARKET AND SECONDARY MARKET. C) CALL MONEY MARKET AND STOCK MARKET. D) NONE OF THE ABOVE. Show Answer Correct Answer: B) PRIMARY MARKET AND SECONDARY MARKET. 12. Assume that the dividend on Central Power Company's $ 3.25 preferred stock issue is paid annually at the endof the year. Determine the price of this issue if its return is 12%. A) $ 25.25. B) $ 27.08. C) $ 26.25. D) $ 38.57. Show Answer Correct Answer: B) $ 27.08. 13. What is a good description of a Commodity? A) A basic good that is typically sold in retail stores. B) A basic good that extremely rare and unusual. C) A basic good used on commerce that is interchangeable with other goods of the same type. D) A basic good that is in unlimited supply. Show Answer Correct Answer: C) A basic good used on commerce that is interchangeable with other goods of the same type. 14. The oldest and most prestigious market in the United States where the most secure corporations trade A) New York Stock Exchange. B) National Association of Securities Dealers Automated Quotation. C) Standard and Poors 500. D) Dow Jones Industrial Average. Show Answer Correct Answer: A) New York Stock Exchange. 15. Which organizations was not created under Bretton Woods era? A) The International Bank for Reconstruction and Development (World Bank). B) The International Monetary Fund (IMF). C) United Nation (UN). D) None of above. Show Answer Correct Answer: C) United Nation (UN). 16. What type of instruments are traded in a Money Market? A) Call money. B) Treasury bills. C) Commercial bills. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. The representative money essentially functioned as an IOU, we were pleased with the receipt of said document as it is an asset A) Fiat Money. B) Specie. C) Commodity Money. D) Representative Money. Show Answer Correct Answer: D) Representative Money. 18. All of the following are low-risk investments EXCEPT A) Municipal bonds. B) Junk bonds. C) Savings bonds. D) Treasury bonds. Show Answer Correct Answer: B) Junk bonds. 19. Determine the Bid/ask spread with the following given data:Currency is British pound;Bid rate is $ 1.52;Ask rate is $ 1.60What is the bid/ask percentage spread? A) 0.06 or 6%. B) 0.05 or 5%. C) 0.03 or 3%. D) 0.04 or 4%. Show Answer Correct Answer: B) 0.05 or 5%. 20. All of the following are basic components of bonds EXCEPT A) Treasury bonds. B) Maturity. C) Par value. D) Coupon rate. Show Answer Correct Answer: A) Treasury bonds. 21. A country has a comparative advantage in the production of a commodity when it A) Produces less with same input. B) Produces at a lower opportunity cost. C) Produces same output with same input. D) Produces more with same input. Show Answer Correct Answer: B) Produces at a lower opportunity cost. 22. Income not used for consumption A) Savings. B) Return. C) Investment. D) Diversification. Show Answer Correct Answer: A) Savings. 23. The Jamaican dollar moves from J$ 145 = US$ 1 to J$ 150 = US$ 1 due to market forces. This means that A) Jamaican dollar had depreciated. B) Jamaican dollar has devalued. C) Jamaican dollar has appreciated. D) Jamaican dollar has revalued. Show Answer Correct Answer: A) Jamaican dollar had depreciated. 24. Capital market do not provide A) Equity Funds. B) Debenture Funds. C) Short term Funds. D) Long term Funds. Show Answer Correct Answer: C) Short term Funds. 25. COMMERCIAL PAPERS ARE GENERALLY ISSUED BY A) GOVT. OF INDIA. B) RBI. C) FINANCIAL INSTITUTIONS. D) WELL REPUTED COMPANIES. Show Answer Correct Answer: D) WELL REPUTED COMPANIES. 26. Which of the following is an example of a capital market instrument? A) Preferred stocks. B) Stock options. C) Banker's acceptance. D) .S. Treasury bills. Show Answer Correct Answer: A) Preferred stocks. 27. Which of the following is the largest stock exchange in the world? A) London Stock Exchange. B) NASDAQ. C) BSE. D) NYSE. Show Answer Correct Answer: D) NYSE. 28. Spreading out investments to reduce risk. A) Shares. B) Stocks. C) Diversification. D) None of above. Show Answer Correct Answer: C) Diversification. 29. Corporate financing comes ultimately from: A) The financial markets and intermediaries. B) Cash generated from the firm's operations. C) The issue of shares in the firm. D) Savings by households and foreign investors. Show Answer Correct Answer: D) Savings by households and foreign investors. 30. An ..... is simply the rate at which one currency is converted into another. A) Exchange rate. B) Conversion rate. C) Interest rate. D) None of above. Show Answer Correct Answer: A) Exchange rate. ← 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