This quiz works best with JavaScript enabled. Home > Economics > Finance > Markets > Financial Markets – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. T-BILLS ARE NOT ISSUED FOR THE MATURITY PERIOD OF ..... DAYS A) 364. B) 91. C) 365. D) 14. Show Answer Correct Answer: C) 365. 2. When the price of bond is calculated below its par value, it is classified as ..... A) Discount bond. B) Classified bond. C) Consideration earnings. D) Compound bond. Show Answer Correct Answer: A) Discount bond. 3. In 2019, the government revenue was greater than its spending, this means that there is a A) National debt. B) Budget deficit. C) Budget surplus. D) Balanced budget. Show Answer Correct Answer: C) Budget surplus. 4. Market is the market for long term financial claim more than a year. A) Secondary market. B) Primary market. C) Capital market. D) Equity market. Show Answer Correct Answer: C) Capital market. 5. A medium of exchange in the sense that we all agree to accept it in making transactions. A) Barter. B) Money. C) Bank. D) Foreclosures. Show Answer Correct Answer: B) Money. 6. Which one is NOT a function of stock exchange A) Provides scope for healthy speculation. B) Ensures about frauds and safety. C) Ensures liquidity. D) Provides a legal framework. Show Answer Correct Answer: B) Ensures about frauds and safety. 7. The objectives of SEBI include A) To protect interests of inventors. B) To regulate securities market. C) To promote the development of the market. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Regulation of financial markets targets the causes of Market Failure 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. 9. TREASURY BILLS ARE ISSUED BY A) MINISTRY OF FINANCE. B) FINANCIAL INSTITUTIONS. C) COMMERCIAL BANKS. D) RBI ON BEHALF OF THE GOVERNMENT. Show Answer Correct Answer: D) RBI ON BEHALF OF THE GOVERNMENT. 10. What is the example of institution that mainly focuses on offshore financial regulation A) Labuan Islamic Financial Services and Securities Act 2010. B) Capital Market Services Act 2007. C) Islamic Financial Services Act 2013. D) None of above. Show Answer Correct Answer: A) Labuan Islamic Financial Services and Securities Act 2010. 11. NEPSE index family follow ..... methodology of index calculation. A) Value weighted. B) Price weighted. C) Arithmetic weighted series. D) None of above. Show Answer Correct Answer: A) Value weighted. 12. The basic structure of Indian Financial System is divided into four components, which is not a part A) Financial Management. B) Financial Services. C) Financial Instruments. D) Financial Institutions. Show Answer Correct Answer: A) Financial Management. 13. ..... a market in which all financial assets can be sold to someone other than the original issuer A) Financial system. B) Capital market. C) Secondary market. D) Primary market. Show Answer Correct Answer: C) Secondary market. 14. Which of the following takes advantage of the internal trading? A) All shareholders. B) All Debentureholders. C) People having secret information of the company. D) All the employees. Show Answer Correct Answer: C) People having secret information of the company. 15. One of the financial institutions that operates by collecting premiums from clients is called ..... . A) Insurance companies. B) Credit union. C) Brokerage. D) Investment banks. Show Answer Correct Answer: A) Insurance companies. 16. How much will an initial deposit of $ 300 accumulate in an account with 12% interest compounded monthly for five years? A) $ 528.70. B) $ 315.30. C) $ 545.01. D) $ 480.00. Show Answer Correct Answer: C) $ 545.01. 17. Income set aside and not used for consumption A) Return. B) Savings. C) Diversification. D) Investment. Show Answer Correct Answer: B) Savings. 18. Sensex is dependent on ..... companies. A) 50. B) 30. C) 500. D) 100. Show Answer Correct Answer: B) 30. 19. Market where financial assets are resold A) Secondary market. B) Tertiary market. C) Primary market. D) Money market. Show Answer Correct Answer: A) Secondary market. 20. Which of the following is NOT a financial institution in an economy? A) Credit unions. B) Central bank. C) Commercial banks. D) Trade unions. Show Answer Correct Answer: D) Trade unions. 21. Junk bonds usually have low ratings because ..... . A) They are not risky investments. B) They have a low rate of return. C) They have a low risk of default. D) They are a high-risk investment. Show Answer Correct Answer: D) They are a high-risk investment. 22. The return of a share holder is A) Discount rate. B) RATE OF INTEREST. C) Dividend. D) Discount value. Show Answer Correct Answer: C) Dividend. 23. Our account of our money, held by other bank. This definition refers to: A) Vostro account. B) Correspondent bank account. C) Nostro account. D) None of above. Show Answer Correct Answer: C) Nostro account. 24. In the budget of 2020, Finance minister mentioned the plan of releasing the Initial Public offer of A) Shipping corporation of India. B) IRCTC. C) LIC of India. D) NTPC. Show Answer Correct Answer: C) LIC of India. 25. ) If you expect that the price of a stock will decline, which of the following are you most likely do?. A) Buy a put option on the stock. B) Buy a call option on the stock. C) Write a put option on the stock. D) Buy the stock on margin. Show Answer Correct Answer: A) Buy a put option on the stock. 26. What is Commodity Money? A) Money that has value because the government says so. B) Money that is backed by silver or gold. C) It have value because the item is worth something. D) None of above. Show Answer Correct Answer: C) It have value because the item is worth something. 27. The network of savers, investors, financial institutions, and financial assets is known as the A) Credit Union. B) Financial system. C) Stockbroker. D) Equities market. Show Answer Correct Answer: B) Financial system. 28. The reserves of a company rightfully belong to ..... A) Promoters. B) Employees. C) Institutional lenders. D) Equity Shareholders. Show Answer Correct Answer: D) Equity Shareholders. 29. Institution for exchange of one country's currency with that of another country. A) Indirect Funds. B) Financial Market Regulation. C) Derivative Securities Market. D) Foreign Exchange Market. Show Answer Correct Answer: D) Foreign Exchange Market. 30. A marketplace where trading of securities including equities, bonds, currencies and derivatives occurs is a(n): A) Financial Market. B) Call Market. C) Foreign Exchange Market. D) Bear Market. Show Answer Correct Answer: A) Financial Market. ← 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