This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The primary market is also called A) Over the counter market. B) New issue market. C) IPo. D) Stock exchange. Show Answer Correct Answer: B) New issue market. 2. Secondary market deals with the ..... of existing securities. A) Sale. B) Purchase-sale. C) Stock. D) Purchase. Show Answer Correct Answer: B) Purchase-sale. 3. Function of an asset that can be retrieved & exchanged at a later time . Money or gold is the most common A) Greenbacks. B) Medium of exchange. C) Unit of account. D) Store of value. Show Answer Correct Answer: D) Store of value. 4. The process of holding shares in electronic form is known as A) Demutualisation. B) Dematerialisation. C) Speculation. D) None of the above. Show Answer Correct Answer: B) Dematerialisation. 5. Prudential Regulation Authority (PRA) is a microprudential 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. 6. Financial intermediaries are: A) Investors. B) Financial markets and banks. C) Savers. D) Brokers. Show Answer Correct Answer: B) Financial markets and banks. 7. Buyers "bid" and sellers "ask" A) Third market. B) Pure Auction Market. C) Bidding market. D) Auction market. Show Answer Correct Answer: B) Pure Auction Market. 8. When I purchase ....., I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors. A) Notes. B) Bonds. C) Stock. D) Bills. Show Answer Correct Answer: C) Stock. 9. Securities can be divided into ..... groups. A) 3. B) 2. C) 4. D) 1. Show Answer Correct Answer: B) 2. 10. Which of the following TERM does not belong to the stock exchange? A) IPO. B) KPO. C) NAV. D) NSE. Show Answer Correct Answer: B) KPO. 11. What is the stock market considered, when it is in the positive? A) Bull. B) Bear. C) Neutral. D) All choices. Show Answer Correct Answer: A) Bull. 12. A list of your investments A) Portfolio. B) Mutual Fund. C) Investment. D) 401(k). Show Answer Correct Answer: A) Portfolio. 13. Money market provides ..... A) Medium term Funds. B) Shares. C) Short term Funds. D) Long term Funds. Show Answer Correct Answer: C) Short term Funds. 14. Facilitating innovation and digital services through the capital market andCreating avenues for a sustainable financing ecosystem.This statement refers to the functions of: A) Bank Negara. B) Securities Commission. C) Commercial Bank. D) Investment Bank. Show Answer Correct Answer: B) Securities Commission. 15. Debt Instrument are issued by Corporate Houses are raising short term financial resources from the money market are called ..... A) Government Securities. B) Treasury Bills. C) Certificate of Deposit. D) Commercial Paper. Show Answer Correct Answer: D) Commercial Paper. 16. High-risk bonds issued by new companies are often called ..... A) Junk Bonds. B) James Bonds. C) Municipal Bonds. D) Savings Bonds. Show Answer Correct Answer: A) Junk Bonds. 17. A company posted an EPS of ₹ 20 in the financial year 2021-22. The company's EPS is expected to increase by 20% next year, if the company's stock is currently trading at ₹ 100, the forward PE of the company is: A) 6. B) 5. C) 6.17. D) 4.17. Show Answer Correct Answer: D) 4.17. 18. A treasury bill is an instrument of: A) Dividend. B) Short term debt. C) Long term debt Interest. D) None of above. Show Answer Correct Answer: B) Short term debt. 19. The national stock exchange of India was recognised as stock exchange in the year: A) 1993. B) 1994. C) 1992. D) 1995. Show Answer Correct Answer: C) 1992. 20. Capital market is a market for A) Short Term Finance. B) Medium Term Finance. C) Long Term Fiance. D) Both Short Term and Medium Term Fiance. Show Answer Correct Answer: C) Long Term Fiance. 21. Clearing and settlement operations of NSE are carried out by: A) CDSL. B) NSCCL. C) SBI. D) NSDL. Show Answer Correct Answer: B) NSCCL. 22. The main advantage of diversification as an investment policy is that it A) Offsets the effects of inflation on investments. B) Reduces risk to investors. C) Increases investors' access to their money. D) Guarantees a fixed rate of return on an investment. Show Answer Correct Answer: B) Reduces risk to investors. 23. The type of market in which securities with less than one-year maturity is traded, is classified as: A) Global Market. B) Capital Market. C) Money Market. D) Transaction Market. Show Answer Correct Answer: C) Money Market. 24. Who is not a regulator (like SEC, SEBI) from the below list A) FCA. B) CFTC. C) FINRA. D) LSE. Show Answer Correct Answer: D) LSE. 25. The main characteristics of money market transactions which enables it to have active secondary market are: A) Securities that trade in one year or less. B) Securities that are of large denomination. C) Securities that are very liquid. D) All above. Show Answer Correct Answer: D) All above. 26. This stock exchange is all electronic trading, there is no floor trading A) AMEX. B) NYSE. C) SEC. D) NASDAQ. Show Answer Correct Answer: D) NASDAQ. 27. Statutory body governing the capital market A) Commercial Banks. B) IDBI. C) RBI. D) SEBI. Show Answer Correct Answer: D) SEBI. 28. Who is a Counterparty? A) A Large Financial Organization. B) Mutual Fund. C) The other party or participant in a trade. D) Clearing Agent Bank at which the Corporation holds Securities. Show Answer Correct Answer: C) The other party or participant in a trade. 29. Using the 'liquidity ratio' and the 'capital ratio' together gives a better understanding of the bank's overall stability. 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. 30. A corporation acquires new funds only when its securities are sold in the A) Primary market by a stock exchange broker. B) Secondary market by a securities dealer. C) Primary market by an investment bank. D) Secondary market by a commercial bank. Show Answer Correct Answer: C) Primary market by an investment bank. ← 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 8Financial Markets Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books