This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The market for short term financial assets/ instruments, that are close substitutes of money, is called: A) Money Market. B) Capital Market. C) Financial Market. D) Forex Market. Show Answer Correct Answer: A) Money Market. 2. In the 1800's, people in mining towns in the West often paid for goods with gold nuggets or gold dust. What was the function of gold? A) It was used as fiat money. B) It was used as respresentative money. C) It was used as a currency. D) It was used as part of a barter system. Show Answer Correct Answer: C) It was used as a currency. 3. Profits made from investments (by buying low & selling high) are reported as ..... A) Bull Markets. B) Bear Markets. C) Capital Gains. D) Capital Losses. Show Answer Correct Answer: C) Capital Gains. 4. What is the DOW Jones Industrial Average? A) The 100 top selling stocks over the past 10 years. B) 30 stocks that represent the whole market. C) 500 stocks from different industries that change annually. D) 75 stocks selected from the NYSE, NASDAQ, and the OTC Market. Show Answer Correct Answer: B) 30 stocks that represent the whole market. 5. This instrument helps to meet the inter-bank fund requirements in the short run A) Certificate of deposit. B) Call money. C) Treasury bill. D) Commercial bill. Show Answer Correct Answer: B) Call money. 6. In which of the companies will you expect a high asset turnover: A) Power companies. B) Heavy machinery companies. C) Infrastructure companies. D) Retail companies. Show Answer Correct Answer: D) Retail companies. 7. A company owned by families or a small number of investors and do not issue stock to the public. A) Industry. B) Private company. C) Portfolio. D) Public company. Show Answer Correct Answer: B) Private company. 8. What is a Central securities depository? A) Settlement authority. B) Derivative Agent. C) Maintains a centralized register of financial instruments. D) Investment intermediary directly executes transactions. Show Answer Correct Answer: C) Maintains a centralized register of financial instruments. 9. One of the following is the "Depository" of India: A) NASDAQ. B) NSDL. C) SEBI. D) OTCEI. Show Answer Correct Answer: B) NSDL. 10. On this day, the exchange will deliver the share or make payment to the other broker A) Pay-in day. B) Pay-out day. C) Transaction day. D) None of the above. Show Answer Correct Answer: B) Pay-out day. 11. Full form of e-IPOs A) Electronic internet Public Offer. B) Electronic Initial Prospectus Offer. C) Electronic Initial Public Offer. D) Electronic Initial Private Offer. Show Answer Correct Answer: C) Electronic Initial Public Offer. 12. In financial markets, the period of maturity more than five years of financial instruments is classified as A) Intermediate term. B) Long-term. C) Short-term. D) Capital term. Show Answer Correct Answer: B) Long-term. 13. "Give me $ 1, 000 today and I'll double your money in five years, " offers the investment broker. To the nearest percent, what annual interest rate is being offered? A) 29%. B) 32%. C) 25%. D) 15%. Show Answer Correct Answer: D) 15%. 14. What happens to a company's stock price when the company makes a profit? A) The stock price stays the same. B) The stock price goes in the same direction as the stock market. C) The stock price goes up. D) The stock price goes down. Show Answer Correct Answer: C) The stock price goes up. 15. The Index of NSE is called A) SENSEX. B) NIFTY. C) INDEX. D) LISTING. Show Answer Correct Answer: B) NIFTY. 16. The main difference between ETF and Mutual fund is: A) ETF is active while Mutual fund is a passive instrument. B) Mutual fund can be traded like a stock while ETF can't be traded. C) ETF is traded real time in exchanges while mutual fund is not. D) None of the above. Show Answer Correct Answer: C) ETF is traded real time in exchanges while mutual fund is not. 17. All modern paper currencies are ....., as are most modern coins, the value depends on the strength of the issuing country's economy A) Representative Money. B) Fiat Money. C) Commodity Money. D) Specie. Show Answer Correct Answer: B) Fiat Money. 18. Which of the following is the function of Financial Market? A) Mobilization of savings. B) Price fixation. C) Provide liquidity to financial assets. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. A method of reducing risks in which the cost/consequences are distributed among several participants A) Equity Sharing. B) Risk Sharing. C) Bond Market. D) Liquidity. Show Answer Correct Answer: B) Risk Sharing. 20. What is a bank position when its has more cash holding? A) Long position. B) Surplus position. C) Square position. D) Short position. Show Answer Correct Answer: A) Long position. 21. A commercial bill is used to ..... A) Meet the long term debt. B) Pay the interest. C) Meet the short term debt. D) Finance the working capital requirements. Show Answer Correct Answer: D) Finance the working capital requirements. 22. A type of market in which each transaction takes place at predetermined time intervals A) Call Market. B) Financial Market. C) Bond Market. D) Continuous Market. Show Answer Correct Answer: A) Call Market. 23. A basic function of money, providing a unit of measurement for defining, recording, and comparing value, example, one dollar signifies not only a one dollar bill A) Store of value. B) Greenbacks. C) Medium of exchange. D) Unit of account. Show Answer Correct Answer: D) Unit of account. 24. Which is term of where buyers and sellers of securities meet in one central location to conduct trades? A) Over the counter. B) Exchange. C) Barter system. D) Transactions. Show Answer Correct Answer: B) Exchange. 25. National stock exchange of India situated at? A) Bangalore. B) Hyderabad. C) Bombay. D) None of these. Show Answer Correct Answer: C) Bombay. 26. The reason a company may issue shares, would be to A) Decrease number of shareholders. B) Raise capital. C) Increase number of bondholders. D) Increase number of shareholders. Show Answer Correct Answer: B) Raise capital. 27. What are stocks? A) Shares of ownership in a corporation. B) Bonds with potential to make money. C) Bonds that are traded. D) Shares of trading in a corporation. Show Answer Correct Answer: A) Shares of ownership in a corporation. 28. What is the initiative taken by asean to incorporate islamic finance and ecosystem A) Increase the number of ibf. B) Green bond. C) Promote awareness. D) None of above. Show Answer Correct Answer: B) Green bond. 29. The safest instrument of money market is A) Call Money. B) Commercial Paper. C) Treasury Bill. D) Commercial Bill. Show Answer Correct Answer: C) Treasury Bill. 30. In Private Placement securities are issued to A) General investors. B) Institutional investors. C) Stock brokers. D) None of above. Show Answer Correct Answer: B) Institutional investors. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesFinancial Markets Quiz 1Financial Markets Quiz 2Financial Markets Quiz 3Financial Markets Quiz 5Financial Markets Quiz 6Financial Markets Quiz 7Financial Markets Quiz 8Financial Markets Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books