This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When stocks overall are rising, the market is called? A) Market capitalization. B) Market diversification. C) A bull market. D) A bear market. Show Answer Correct Answer: C) A bull market. 2. ..... a strategy of holding different kinds of investments to minimize risk A) Risk. B) Bond. C) Futures contract. D) Portfolio diversification. Show Answer Correct Answer: D) Portfolio diversification. 3. It is used as an alternative to bank borrowing for large and creditworthy companies, A) Commercial bill. B) Commercial papers. C) Call money. D) None of the above. Show Answer Correct Answer: B) Commercial papers. 4. The following are referred to as leakages out of the flow of national income EXCEPT:* A) Savings. B) Taxes. C) Exports. D) Imports. Show Answer Correct Answer: C) Exports. 5. The IMF and World Bank have both stepped in to help countries in the aftermath of the financial crisis. 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. 6. What is the term for the symbol of a company? (ex. Apple is AAPL) A) Portfolio. B) Stock symbol or ticker. C) Earnings. D) Exchange. Show Answer Correct Answer: B) Stock symbol or ticker. 7. Which of the following is an example of representative money? A) An IOU note. B) Diamonds. C) Gold earrings. D) A fur coat. Show Answer Correct Answer: A) An IOU note. 8. Which one of the following is NOT a function of financial intermediaries? A) Intermediation. B) Direct lending between savers and borrowers. C) Fund raising. D) Wallet services. Show Answer Correct Answer: D) Wallet services. 9. Which government agency watches over the financial market & protects investors from fraud? A) FCC. B) SEC. C) ABC. D) FDIC. Show Answer Correct Answer: B) SEC. 10. If governments print too much money and flood the market with currency it causes ..... This is bad for the overall economy because prices will rise quickly and savings will be lost. A) Tariffs. B) Deregulation. C) Inflation. D) More demand for money. Show Answer Correct Answer: C) Inflation. 11. Instruments traded in capital market are: A) Debentures. B) Bonds. C) Equity shares and preferences shares. D) All of these. Show Answer Correct Answer: D) All of these. 12. ..... is not participants in money market. A) RBI. B) NBFCs. C) SEBI. D) MUTUAL FUNDS. Show Answer Correct Answer: C) SEBI. 13. ..... agents bring investors / customers to mutual funds for commission A) Market Making. B) Selling and Distribution. C) Transfer. D) Custodian. Show Answer Correct Answer: B) Selling and Distribution. 14. Primary market is also called as A) Indirect Market. B) Secondary market. C) New Issue Market. D) Money market. Show Answer Correct Answer: C) New Issue Market. 15. Which of the following NOT the main motive of a bank to participate in money market A) To manage liquidity. B) To create new position for profit. C) To square the position. D) To manage their market risk. Show Answer Correct Answer: D) To manage their market risk. 16. .Dematerialization is the process of holding securities in A) Paper mode. B) Electronic mode. C) Physical form. D) Wallet. Show Answer Correct Answer: B) Electronic mode. 17. Since the financial crisis, governments have tried to improve the regulation of financial markets. 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. A money market instruments issued on behalf of Central Government is called A) Call money. B) Commercial paper. C) Treasury bill. D) Commercial bill. Show Answer Correct Answer: C) Treasury bill. 19. How much must be invested today for $ 400 to be received 3 years from now, assuming an interest rate of 8%, quarterly compounding? A) $ 315.40. B) $ 369.54. C) $ 317.53. D) $ 228.00. Show Answer Correct Answer: A) $ 315.40. 20. Why would a company need to issue stock? A) To increase its' customer base. B) To show customers that it's successful. C) To stop the government from regulating it. D) To raise money. Show Answer Correct Answer: D) To raise money. 21. Government Securities are issued by agencies such as ..... A) Central Government. B) State Government. C) Semi Government Authorities. D) All of the above. Show Answer Correct Answer: D) All of the above. 22. Instruments deals in capital market are A) Call money. B) Commercial Bill. C) Zero Coupon Bard. D) Equity Shares. Show Answer Correct Answer: D) Equity Shares. 23. Which of the below is a function of a regulator A) Build contact with institutional investors. B) Set rules and regulations and ensure compliance. C) Advises and participates in offer for subscription, M&A etc. D) Undertakes reorganization of loss making companies. Show Answer Correct Answer: B) Set rules and regulations and ensure compliance. 24. Primary and secondary market: A) Complement each other. B) Compete with each other. C) Control each other. D) Function independently. Show Answer Correct Answer: A) Complement each other. 25. The person who inherits ownership of a financial asset if the purchaser dies is called the A) Benefactor. B) Beneficiary. C) Recipient. D) Donor. Show Answer Correct Answer: B) Beneficiary. 26. Call money or call loans are ..... . A) Fixed. B) Cheap. C) Costly. D) Liquid. Show Answer Correct Answer: D) Liquid. 27. Within the structure of a Mutual Fund, ..... are responsible to regulate the mutual fund and make sure it runs as per the guidelines A) Fund Manager. B) Distributor. C) Custodian. D) Trustee. Show Answer Correct Answer: D) Trustee. 28. Primary market deals with selling of securities for the first time through the following method A) Investor issue. B) Bonus declaration method. C) Employee stock issue. D) Book building. Show Answer Correct Answer: D) Book building. 29. Spot Market is a market where the delivery of the financial instrument and payment of cash occurs A) In the future. B) Uncertain. C) Immediately. D) After on month. Show Answer Correct Answer: C) Immediately. 30. 'Dirty float' is another name for which exchange rate regime? A) Flexible. B) Managed. C) Fixed. D) Free float. Show Answer Correct Answer: B) Managed. ← 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