This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. Clearing and settlement operations of NSE are carried out by: A) CDSL. B) NSDL. C) NSCCL. D) SBI. Show Answer Correct Answer: C) NSCCL. 3. The main advantage of diversification as an investment policy is that it A) Reduces risk to investors. B) Increases investors' access to their money. C) Offsets the effects of inflation on investments. D) Guarantees a fixed rate of return on an investment. Show Answer Correct Answer: A) Reduces risk to investors. 4. The type of market in which securities with less than one-year maturity is traded, is classified as: A) Money Market. B) Capital Market. C) Transaction Market. D) Global Market. Show Answer Correct Answer: A) Money Market. 5. Who is not a regulator (like SEC, SEBI) from the below list A) FCA. B) LSE. C) CFTC. D) FINRA. Show Answer Correct Answer: B) LSE. 6. 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. 7. This stock exchange is all electronic trading, there is no floor trading A) NYSE. B) NASDAQ. C) AMEX. D) SEC. Show Answer Correct Answer: B) NASDAQ. 8. Statutory body governing the capital market A) Commercial Banks. B) RBI. C) SEBI. D) IDBI. Show Answer Correct Answer: C) SEBI. 9. Who is a Counterparty? A) Mutual Fund. B) The other party or participant in a trade. C) A Large Financial Organization. D) Clearing Agent Bank at which the Corporation holds Securities. Show Answer Correct Answer: B) The other party or participant in a trade. 10. 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. 11. A corporation acquires new funds only when its securities are sold in the A) Primary market by an investment bank. B) Primary market by a stock exchange broker. C) Secondary market by a securities dealer. D) Secondary market by a commercial bank. Show Answer Correct Answer: A) Primary market by an investment bank. 12. ..... a situation in which the outcome is not certain, but the probabilities can be estimated A) Equities. B) Portfolio diversification. C) Risk. D) Bond. Show Answer Correct Answer: C) Risk. 13. A bank pays 7% interest on its 1-year deposit. The Price-to-earning ratio of the FD is: A) 14.28. B) 14.00. C) 7. D) 15.28. Show Answer Correct Answer: A) 14.28. 14. In which type of financial markets are fresh shares issued and sold? A) Money market. B) Capital market. C) Primary market. D) Secondary market. Show Answer Correct Answer: C) Primary market. 15. A $ 1, 000 par value bond makes annual coupon payment of $ 75. If it offers a yield to maturity of 7.5 percent, what is the price of the bond? A) $ 75. B) $ 750. C) $ 1000. D) $ 1200. Show Answer Correct Answer: C) $ 1000. 16. Which of the following is the LEAST risky investment? A) Corporate bonds. B) Stocks. C) U.S. Treasury bonds. D) Mutual funds. Show Answer Correct Answer: C) U.S. Treasury bonds. 17. Compared to money market securities, capital market securities have A) More liquidity. B) Longer maturity. C) Lower yields. D) Less risk. Show Answer Correct Answer: B) Longer maturity. 18. The IMF and World Bank regulate the Global Financial System 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. 19. Which of the following instruments are traded in a capital market? A) Corporate bonds. B) U.S. Treasury bills. C) Negotiable bank CDs. D) Repurchase agreements. Show Answer Correct Answer: A) Corporate bonds. 20. Who controls the capital market of India? A) SEBI. B) RBI. C) IRDA. D) NABARD. Show Answer Correct Answer: A) SEBI. ← PreviousNext →Related QuizzesFinance QuizzesFinancial Markets Quiz 1Financial Markets Quiz 2Financial Markets Quiz 3Financial Markets Quiz 4Financial Markets Quiz 5Financial Markets Quiz 6Financial Markets Quiz 7Financial Markets Quiz 8Financial Markets Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books