This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is the first commercial bank in India to launch a mutual fund? A) HDFC. B) Canara Bank. C) Bank of India. D) SBI. Show Answer Correct Answer: D) SBI. 2. It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms. A) Commercial bill. B) Commercial papers. C) Call money. D) None of the above. Show Answer Correct Answer: A) Commercial bill. 3. Primary market is a market where securities are traded in the A) First Time. B) Second Time. C) Three Time. D) Several Times. Show Answer Correct Answer: A) First Time. 4. Which of the following reasons is not responsible for the ups and downs in the Sensex? A) Rain. B) Monetary Policy. C) Political instability. D) None of the above. Show Answer Correct Answer: D) None of the above. 5. The largest custodian bank in the world is A) JP Morgan Chase. B) State Street Bank and Trust Company. C) Citigroup. D) The Bank of New York Mellon. Show Answer Correct Answer: A) JP Morgan Chase. 6. Equities are considered long-term securities because they have no ..... day. A) Distribution. B) Maturity. C) Selling. D) Investing. Show Answer Correct Answer: B) Maturity. 7. Indian Financial System is a link between A) Borrowers and seekers of fund. B) Bank and agent. C) Businessman and RBI. D) Insurance and banking. Show Answer Correct Answer: A) Borrowers and seekers of fund. 8. The instrument used in capital market is A) Equity. B) Commercial paper. C) Treasury Bill. D) All the above. Show Answer Correct Answer: A) Equity. 9. The rate of return on a corporate, municipal, or government bond is its ..... . A) Compensation rate. B) Par value. C) Interest rate. D) Coupon rate. Show Answer Correct Answer: D) Coupon rate. 10. FULL FORM OF S.E.B.I A) STOCK EXCHANGE BOARD OF INDIA. B) SECURITY AND EXCHANGE BOARD OF INDIA. C) SECURITIES EXCHANGE BOARD OF INDIA. D) SECURITIES AND EXCHANGE BOARD OF INDIA. Show Answer Correct Answer: D) SECURITIES AND EXCHANGE BOARD OF INDIA. 11. The 'New York Stock Exchange' is an example of A) Short-term markets. B) Liquid markets. C) Capital markets. D) Money markets. Show Answer Correct Answer: C) Capital markets. 12. When a trade bill is accepted by a commercial bank, it is known as a ..... A) Commercial Bill. B) Call money. C) None of these. D) Certificate of deposit. Show Answer Correct Answer: A) Commercial Bill. 13. Circuit breakers are triggered when index rises/fall by A) 10%, 12%, 15%. B) 10%, 12%, 20%. C) 10%, 15%, 20%. D) 5%, 10%, 15%. Show Answer Correct Answer: C) 10%, 15%, 20%. 14. ..... a market in which only the original issuer can sell or repurchase a financial asset A) Capital market. B) Primary market. C) Financial system. D) Secondary market. Show Answer Correct Answer: B) Primary market. 15. Currency deposited by national governments or corporations, outside of its home market. For example, it can be currency held in banks located outside of the country which issues the currency A) Eurocurrency. B) US Currency. C) Import Currency. D) Eurobond. Show Answer Correct Answer: A) Eurocurrency. 16. Method of raising funds by issuing new securities to stock brokers is A) Offer for sale. B) IPO. C) Both of the above. D) None. Show Answer Correct Answer: A) Offer for sale. 17. The oldest stock exchange in India is A) Delhi Stock Exchange. B) Madras Stock Exchange. C) Bombay Stock Exchange. D) National Stock Exchange. Show Answer Correct Answer: C) Bombay Stock Exchange. 18. What is the main function of financial market? A) Price Determination. B) Channeling funds. C) Provides Liquidity to Financial Assets. D) None of above. Show Answer Correct Answer: B) Channeling funds. 19. Finance companies raise funds in the money market by selling A) Federal funds. B) Commodity. C) Eurodollars. D) Commercial paper. Show Answer Correct Answer: D) Commercial paper. 20. The allocative function of financial market facilitates A) Price discovery. B) Liquidity to financial assets. C) Most productive investment opportunity. D) None. Show Answer Correct Answer: C) Most productive investment opportunity. 21. Which of the following is included in the financial assets? A) Shares. B) Debentures. C) Treasury bill. D) All the above. Show Answer Correct Answer: D) All the above. 22. Who is a market maker: A) Only works on quote-driven markets. B) Has a complete overview of the demand and the supply of a stock. C) Makes the Market. D) Provides bid and ask prices for a certain stock. Show Answer Correct Answer: D) Provides bid and ask prices for a certain stock. 23. Which Financial Market has lowest risk? A) Foreign exchange market. B) Money market. C) Commodities market. D) Derivatives market. Show Answer Correct Answer: B) Money market. 24. A company can raise capital through the primary market in the form of A) Equity shares. B) Preference shares. C) Debentures. D) All of the above. Show Answer Correct Answer: C) Debentures. 25. What is the MAIN reason to put money into a saving's account? A) Making a safe long-term investment. B) Low to moderate risk. C) Liquidity. D) High interest rate of return. Show Answer Correct Answer: C) Liquidity. 26. Banks (as financial intermediaries) bring together ..... A) Savers and spenders. B) Savers and borrowers. C) Consumers and producers. D) Cheeseburgers and fries. Show Answer Correct Answer: B) Savers and borrowers. 27. Money market-borrow on ..... term basis A) Infinity. B) Long. C) Medium. D) Short. Show Answer Correct Answer: D) Short. 28. An index fund is: A) A fund which is passive. B) A fund with higher fees. C) A fund which can be traded in an exchange. D) A fund which is active. Show Answer Correct Answer: A) A fund which is passive. 29. If Nepal Rastra Bank increase the CRR rate then ..... A) Liquidity will increase in the market. B) Liquidity will decrease in the market. C) Liquidity will not be changed in the market. D) None of the above. Show Answer Correct Answer: B) Liquidity will decrease in the market. 30. What is the main difference between Treasury bonds, Treasury notes, and Treasury bills? A) The method of sale. B) The interest rate. C) The minimum purchase requirement. D) The amount of time for maturity. Show Answer Correct Answer: D) The amount of time for maturity. ← 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