This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If you purchase a right share as per the right on your existing ownership on a company, the transaction is ..... transaction. A) Primary market. B) Money market. C) Secondary market. D) Derivative market. Show Answer Correct Answer: A) Primary market. 2. An money market instruments issued on behalf of Central Government. A) Call Money. B) Treasury Bill. C) Commercial Paper. D) Commercial Bill. Show Answer Correct Answer: B) Treasury Bill. 3. A stock market index ..... A) Provides weights to shares. B) Show the volume of trade in market. C) Shows transactions of shares. D) Shows trends in the market. Show Answer Correct Answer: D) Shows trends in the market. 4. The share of ownership in a corporation that gives holders voting rights and a share of profit. A) Stock index. B) Preferred Stock. C) Primary market. D) Common Stock. Show Answer Correct Answer: D) Common Stock. 5. When the NSEI was established A) 1990. B) 1992. C) 1998. D) 1997. Show Answer Correct Answer: B) 1992. 6. Company X has a beta of of 1.45. The expected risk-free rate of interest is 2.5% and the expected return on the market as a whole is 10%. Using the CAPM, what is ABC's expected return? A) 12.25%. B) 13.3%. C) 18.75%. D) 13.375%. Show Answer Correct Answer: D) 13.375%. 7. The instrument traded in securities market is A) Precious Metal. B) Crude. C) Currency. D) Stock. Show Answer Correct Answer: D) Stock. 8. The markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as A) Physical asset markets. B) Financial asset markets. C) Easy markets. D) Financial instruments. Show Answer Correct Answer: B) Financial asset markets. 9. An example of equity is A) A treasury bill. B) A share of stock. C) A long-term certificate of deposit. D) A treasury bond. Show Answer Correct Answer: B) A share of stock. 10. Maturity period to call money is A) 15 to 1 years. B) 15 to 90 days. C) 1 to 30 days. D) 1 to 15 days. Show Answer Correct Answer: D) 1 to 15 days. 11. The money an investor receives above and beyond the sum of money initially invested. A) Interest. B) Investment. C) Portfolio. D) Return. Show Answer Correct Answer: D) Return. 12. A lack of regulation in the financial sector also led to market failure and other problems which contributed to instability: 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. 13. Which is the largest investment bank in the world by revenue? (2016) A) CITI. B) JP Morgan. C) Goldman Sachs. D) Lehmann Brothers. Show Answer Correct Answer: B) JP Morgan. 14. The organisations/institutions that provide long term funds. A) Money market. B) Secondary market. C) Primary market. D) Capital market. Show Answer Correct Answer: D) Capital market. 15. Organizations or businesses that provide services related to money. (like a bank or a credit union) A) Financial market. B) Financial institution. C) Financial account. D) None of above. Show Answer Correct Answer: B) Financial institution. 16. It is a legally enforceable document which is issued by a stockbroker within 24 hours of the execution of a trade order. A) PAN number. B) Unique Order Code. C) Contract Note. D) None of the above. Show Answer Correct Answer: C) Contract Note. 17. SEBI protects the interest of A) Investor. B) Companies. C) Brokers. D) None of the above. Show Answer Correct Answer: A) Investor. 18. It is a negotiated sale involving a specific buyer. A) Private placement. B) Private exchange. C) Primary market. D) Secondary market. Show Answer Correct Answer: A) Private placement. 19. There are two types of financial regulation:i) Microprudential regulation; and ii) Macroprudential regulation 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. 20. Which of the following is an example of money as a unit of account? A) Lending a friend $ 25.00. B) Checking the price of a camera at several stores before buying it at the lowest price. C) Purchasing a toy for $ 8.99. D) Opening a saving account at a bank. Show Answer Correct Answer: B) Checking the price of a camera at several stores before buying it at the lowest price. 21. A collection of financial assets is often called A) A coupon rate. B) A portfolio. C) A prospectus. D) A return. Show Answer Correct Answer: B) A portfolio. 22. Which of the following falls in the Category of Zero Coupon Bond? A) Treasury Bill. B) Commercial Paper. C) Certificate of Deposit. D) Commercial Bill. Show Answer Correct Answer: A) Treasury Bill. 23. Regulation usually focuses on systemic risks-identifying systemic risks in the markets and finding ways to manage or remove them. 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. 24. These are markets in which users of funds (e.g. corporations) raise funds through new issues of financial instruments, such as stocks and bonds. A) Secondary Market. B) Capital Market. C) Money Market. D) Primary Markets. Show Answer Correct Answer: D) Primary Markets. 25. A type of market where traders can trade on an ongoing basis when the market is open. A) Lease market. B) Continuous market. C) Financial market. D) Foreign market. Show Answer Correct Answer: B) Continuous market. 26. If a firm requires to two crores for six months time to keep the stock of raw material, it should approach(a) (b) (c) (d) A) Money market. B) Capital market. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: A) Money market. 27. What is it called when you loss money on stocks you have purchased. A) Capital gain. B) Corporate loss. C) Capital loss. D) Capital. Show Answer Correct Answer: C) Capital loss. 28. Which of the following performs the functions of mobilisation of saving andtransfer them to more productive uses? A) Retail Market. B) Financial Institutions. C) Financial Market. D) Wholesale Market. Show Answer Correct Answer: C) Financial Market. 29. The value of a currency in terms of another is not known directly is called as ..... A) Cross rate. B) Forward rate. C) Currency swape. D) None of above. Show Answer Correct Answer: A) Cross rate. 30. Institutions such as banks that collect funds from savers that can be loaned to borrowers are known as A) Financial assets. B) Dividends. C) Financial intermediaries. D) Credit Unions. Show Answer Correct Answer: C) Financial intermediaries. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesFinancial Markets Quiz 1Financial Markets Quiz 2Financial Markets Quiz 3Financial Markets Quiz 4Financial Markets Quiz 5Financial Markets Quiz 7Financial Markets Quiz 8Financial Markets Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books