This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Finance functions are ..... A) Planning of funds. B) Raising of funds. C) Allocation of Resource. D) All the above. Show Answer Correct Answer: D) All the above. 2. The Financial Policy Committee (FPC) is a macroprudential regulator. 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. 3. If a firm requires to raise two crores for six months time to keep the stock of raw material, it should approach A) Money market. B) Capital market. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: A) Money market. 4. The market for buying and selling of commercial Bills of Exchange is known as a ..... A) Treasury Bill Market. B) Commercial Paper Market. C) Capital Market. D) Commercial Bill Market. Show Answer Correct Answer: D) Commercial Bill Market. 5. Educating the investor is the ..... function of SEBI. A) Protective. B) Regulatory. C) Both the above. D) Developmental. Show Answer Correct Answer: A) Protective. 6. Tom, the jeweler, owed his brother, Jesse some money. Something came up and Jesse needs the money right away. Tom did not have the cash and so, he gave Jesse commodity money in the form of gold. A) Representative money. B) Commodity Money. C) Fiat Money. D) Specie. Show Answer Correct Answer: B) Commodity Money. 7. Date when the Securities and Exchange Commission announced that it had "relinquished control of the Manila Stock Exchange." A) February 3, 1936. B) February 23, 1936. C) February 13, 1936. D) February 3, 1963. Show Answer Correct Answer: A) February 3, 1936. 8. Which of the following are NOT parts of interbank money market operations A) Lend money. B) Issue securities. C) Borrow money. D) Place deposit. Show Answer Correct Answer: D) Place deposit. 9. Penny is an artist and John is a carpenter. Penny agrees to paint a portrait of John's family in exchange for a handmade table created by John. How did Penny and John pay for the goods in their transaction? A) With money. B) Through bartering. C) With currency. D) Using a store of value. Show Answer Correct Answer: B) Through bartering. 10. Equity is traded in which Market? A) Capital. B) Debt. C) Foreign exchange. D) Money. Show Answer Correct Answer: A) Capital. 11. The Stock Market Exchange in which energy and technology stocks are traded in New York City A) Dow Jones industrial Average. B) New York Stock Exchange. C) Nasdaq. D) S & P 500. Show Answer Correct Answer: C) Nasdaq. 12. An Investment in which investors pool their money to buy stocks and bonds A) Diverse Funds. B) Preferred Funds. C) Common Funds. D) Mutual Funds. Show Answer Correct Answer: D) Mutual Funds. 13. Asymmetric information can be divided into ..... A) Money market and capital market. B) Adverse selection and moral hazard. C) Economies of scale and economies of scope. D) None of above. Show Answer Correct Answer: B) Adverse selection and moral hazard. 14. Corporate bonds are issued by ..... A) The Federal Government. B) Private Companies. C) Local Governments. D) Banks. Show Answer Correct Answer: B) Private Companies. 15. Risk in the Money Market is ..... A) High. B) Market Risk. C) Low Credit and Market Risk. D) Medium Risk. Show Answer Correct Answer: C) Low Credit and Market Risk. 16. Profits made from investments are reported as ..... A) Bull Markets. B) Capital Gains. C) Bear Markets. D) Capital Losses. Show Answer Correct Answer: B) Capital Gains. 17. Microprudential regulation ensures that individual firms act fairly towards their customers and don't take excessive risks or break the law. 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. Which of the following is not a part of capital market? A) Banks. B) Financial institutions. C) Stock Exchange. D) RBI. Show Answer Correct Answer: D) RBI. 19. Which of the following is NOT a role of a stock exchange? A) Capital Raising. B) Monitor the market for a fair trading. C) Issue loans and advances. D) Create investment opportunities for investors. Show Answer Correct Answer: C) Issue loans and advances. 20. The sale of an investment for less than its purchase price A) Options. B) Capital Gain. C) Maturity. D) Capital Loss. Show Answer Correct Answer: D) Capital Loss. 21. This person or institution collects funds from savers and invests the funds in loans and other financial assets A) Investment objective. B) Financial intermediary. C) Secondary market. D) Primary market. Show Answer Correct Answer: B) Financial intermediary. 22. Nifty is the index of ..... A) BSE. B) NSE. C) CSE. D) OTCEI. Show Answer Correct Answer: B) NSE. 23. How many times a security can be sold in a secondary market? A) Two time. B) Only one time. C) Multiple times. D) Three times. Show Answer Correct Answer: C) Multiple times. 24. The practice of making high-risk investments with borrowed money in hopes of getting a big return A) Speculation. B) Yield. C) Par value. D) Equities. Show Answer Correct Answer: A) Speculation. 25. Which of the following cannot accept Demand Deposits? A) Local area Banks. B) Commercial Banks. C) NBFC. D) Foreign Banks. Show Answer Correct Answer: C) NBFC. 26. ..... is an American post-trade financial services company providing clearing and settlement services to the financial markets A) Goldman Sachs. B) SEC. C) Depository Trust & Clearing Corporation. D) Northern Trust. Show Answer Correct Answer: C) Depository Trust & Clearing Corporation. 27. A market in which buyers and sellers negotiate and transact business directly, without any intermediary such as resellers. A) Primary Market. B) Equity Market. C) Auction Market. D) Foreign Exchange Market. Show Answer Correct Answer: A) Primary Market. 28. SEBI was established in ..... A) 2001. B) 1988. C) 1984. D) 1956. Show Answer Correct Answer: B) 1988. 29. Full-form of SEBI is A) Small Enterprises in Banking Industries. B) Securities and Exchange Board of India. C) Securities and Exchange board Industries. D) Securities and Energy Board of India. Show Answer Correct Answer: B) Securities and Exchange Board of India. 30. The Ex-dividend date of a company is 27th September 2022, when should you buy the stock to receive the dividend: A) 25th September 2022. B) 29th September 2022. C) 27th September 2022. D) 28th September 2022. Show Answer Correct Answer: A) 25th September 2022. ← 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