This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Banks bring together ..... A) Savers and spenders. B) Savers and borrowers. C) Dealers and druggies. D) Cheeseburgers and fries. Show Answer Correct Answer: B) Savers and borrowers. 2. He didn't believe in storing cash under his mattress but he was storing silver specie. He knew the value would always be there. A) Commodity Money. B) Specie. C) Fiat Money. D) Representative Money. Show Answer Correct Answer: B) Specie. 3. It is an instrument of short-term borrowing by the Government of India maturing in less than one year. A) Commercial bill. B) Treasury bill. C) Call money. D) None of the above. Show Answer Correct Answer: B) Treasury bill. 4. Bank Negara regulates and supervises financial institutions to promote their safety and soundness to achieve ..... A) Financial stability. B) Currency operations. C) Financial integrity. D) Monetary stability. Show Answer Correct Answer: A) Financial stability. 5. Money market is use for ..... purpose A) Stock. B) Security. C) Short Term. D) Long Term. Show Answer Correct Answer: C) Short Term. 6. WHICH OF THE FOLLOWING IS NOT A PART OF INDIAN FINANCIAL SYSTEM A) Agriculture development Institutions. B) WTO. C) Banks. D) Non Banks. Show Answer Correct Answer: B) WTO. 7. All the following are types of non-bank financial intermediaries except ..... A) Discount Houses. B) Cagamas Berhad. C) Provident and Pension Funds. D) Development Finance Institutions. Show Answer Correct Answer: A) Discount Houses. 8. Secondary Market deals in: A) New securities with maturity period less than oneyear. B) New securities with maturity period more than one year. C) Existing securities with maturity period less thanone year. D) Existing securities with maturity period more thanone year. Show Answer Correct Answer: D) Existing securities with maturity period more thanone year. 9. One of the below is not a function of a clearing corporation. Which one is that? A) Clearing and Settlement. B) Netting. C) Trade Cancels. D) Trade Matching. Show Answer Correct Answer: C) Trade Cancels. 10. A short term debt obligation backed by govt.with a maturity of less than 1 year. A) Treasury Bill. B) Bills of Payment. C) Certificate of Ownership. D) Certificate of Savings. Show Answer Correct Answer: A) Treasury Bill. 11. Date when the Securities and Exchange Commission (SEC) granted the PSE a "Self-Regulatory Organization" (SRO) status A) June 1998. B) July 1989. C) July 1998. D) June 1989. Show Answer Correct Answer: A) June 1998. 12. A person who buys or sells equities for his or her clients is a ..... A) Accountant. B) Insurance agent. C) Financial advisor. D) Stockbroker. Show Answer Correct Answer: D) Stockbroker. 13. S.E.B.I WAS SET UP IN THE YEAR A) 1992. B) 1995. C) 1990. D) 1993. Show Answer Correct Answer: A) 1992. 14. You plan to borrow $ 2, 000 now and repay it in 5 equal annual installments at the end of each year. If the annual interest rate is 11%, how much will your annual payments be? A) $ 541.14. B) $ 400.00. C) $ 401.84. D) $ 444.00. Show Answer Correct Answer: A) $ 541.14. 15. This financial instrument is issued by RBI to raise funds for Central Government A) Commercial paper. B) Treasury bill. C) Call money. D) Certificate of deposit. Show Answer Correct Answer: B) Treasury bill. 16. Which of the following is not capital market instruments? A) Commercial paper. B) Mortgage. C) Corporate bonds. D) Stocks. Show Answer Correct Answer: A) Commercial paper. 17. How can investors purchase equities? A) They can buy them directly on the Internet. B) They have to use a stockbroker. C) They can buy futures in corporate bonds. D) They can buy a 401(k) plan through a bank. Show Answer Correct Answer: A) They can buy them directly on the Internet. 18. Which of the following would not be considered a real asset? A) A factory. B) A corporate bond. C) A patent. D) A machine. Show Answer Correct Answer: B) A corporate bond. 19. Credit unions are NOT financial intermediaries A) I dont know. B) False. C) True. D) Maybe. Show Answer Correct Answer: B) False. 20. All the following securities are traded in money market except A) Debentures. B) Bankers' acceptances. C) Treasury bills. D) Repurchase agreements. Show Answer Correct Answer: A) Debentures. 21. Amount paid to purchase a bond that will be repaid at maturity. A) Capital gain. B) Par value. C) Principal. D) Yield. Show Answer Correct Answer: B) Par value. 22. The stock market is a physical place. A) Yes, it's located in most major cities around the world. B) No, trading is all done online. C) Yes and No, there are physical places where stocks are sold, but they are also sold virtually. D) None of above. Show Answer Correct Answer: C) Yes and No, there are physical places where stocks are sold, but they are also sold virtually. 23. Which is the most liquid? A) Checking Account. B) Savings Account. C) Certificate of Deposit. D) Money Market Deposit Account. Show Answer Correct Answer: A) Checking Account. 24. Who issues tax exempt municipal bonds (munis)? A) Local commercial banks. B) Federal and state governments. C) Local credit unions. D) State and local governments. Show Answer Correct Answer: D) State and local governments. 25. An example of a firm's financing decision would be: A) Acquiring a competitive firm. B) Determining how much to pay for a specific asset. C) Paying dividends to shareholders. D) Deciding whether or not to increase the price of its products. Show Answer Correct Answer: C) Paying dividends to shareholders. 26. Financial institutions are also known as ..... A) Financial organisation. B) Financial system. C) Financial intermediaries. D) All of the above. Show Answer Correct Answer: C) Financial intermediaries. 27. It accepts deposits from individuals and organizations that have excess funds and provide loans to those who are in need. This financial institution is called ..... A) Credit unions. B) Commercial banks. C) Insurance companies. D) Investment banks. Show Answer Correct Answer: B) Commercial banks. 28. The most commonly used multiple to value banks: A) Price to Earnings. B) Price to Book. C) EV to EBITDA. D) Price to Sales. Show Answer Correct Answer: B) Price to Book. 29. What is the name of the fee paid for an insurance policy? A) Contribution. B) Pension. C) Premium. D) Interest. Show Answer Correct Answer: C) Premium. 30. Treasury bill is issued by A) (b) commercial bank. B) ( d ) reserve bank of India. C) (a) development financial institution. D) ( c ) selected individuals. Show Answer Correct Answer: B) ( d ) reserve bank of India. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesFinancial Markets Quiz 1Financial Markets Quiz 2Financial Markets Quiz 3Financial Markets Quiz 4Financial Markets Quiz 6Financial Markets Quiz 7Financial Markets Quiz 8Financial Markets Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books