This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a financial institution in an economy? A) Commercial banks. B) Central bank. C) Trade unions. D) Credit unions. Show Answer Correct Answer: C) Trade unions. 2. Junk bonds usually have low ratings because ..... . A) They have a low rate of return. B) They have a low risk of default. C) They are not risky investments. D) They are a high-risk investment. Show Answer Correct Answer: D) They are a high-risk investment. 3. The return of a share holder is A) RATE OF INTEREST. B) Dividend. C) Discount rate. D) Discount value. Show Answer Correct Answer: B) Dividend. 4. 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. 5. In the budget of 2020, Finance minister mentioned the plan of releasing the Initial Public offer of A) IRCTC. B) Shipping corporation of India. C) LIC of India. D) NTPC. Show Answer Correct Answer: C) LIC of India. 6. ) 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. 7. 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. 8. The network of savers, investors, financial institutions, and financial assets is known as the A) Stockbroker. B) Equities market. C) Credit Union. D) Financial system. Show Answer Correct Answer: D) Financial system. 9. The reserves of a company rightfully belong to ..... A) Equity Shareholders. B) Institutional lenders. C) Promoters. D) Employees. Show Answer Correct Answer: A) Equity Shareholders. 10. Institution for exchange of one country's currency with that of another country. A) Derivative Securities Market. B) Foreign Exchange Market. C) Financial Market Regulation. D) Indirect Funds. Show Answer Correct Answer: B) Foreign Exchange Market. 11. 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. 12. WHICH OF THE FOLLOWING TERM, IS NOT RELATED TO STOCK EXCHANGE A) BULL. B) BEAR. C) LION. D) STAG. Show Answer Correct Answer: C) LION. 13. Two issues that play a major role in setting an investment objective. A) Time and results. B) Time and income. C) Diversification and return. D) Risk and return. Show Answer Correct Answer: B) Time and income. 14. If a company is already in liquidity crunch and flotation costs of the issue would be high. What kind of instrument will be appoints for the money market. A) Commercial Bills. B) Commercial paper. C) Treasury Bill. D) COD. Show Answer Correct Answer: B) Commercial paper. 15. . ..... is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities. A) Government Securities. B) Mutual Funds. C) Derivatives. D) Shares. Show Answer Correct Answer: B) Mutual Funds. 16. An ideal Capital market is one A) Where finance is available at higher cost. B) Must provide insufficient information to investors. C) Where market operations are inconsistent. D) Which facilitates economic growth. Show Answer Correct Answer: D) Which facilitates economic growth. 17. Which agency regulates and supervises NBFCs? A) Finance Ministry. B) SEBI. C) RBI. D) Respective state government. Show Answer Correct Answer: C) RBI. 18. Type of bonds that pay coupon interest are classified as A) Forward bond. B) Payment bonds. C) Coupon bond. D) Interest bonds. Show Answer Correct Answer: C) Coupon bond. 19. Which of these would be an example of an underlying asset for a derivative? A) Commodity. B) Real estate. C) Cash and cash equivalents. D) Inventories. Show Answer Correct Answer: A) Commodity. 20. Raj Enterprises wishes to invest ₹ 1, 10, 000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund? A) 6. B) 7. C) 4. D) 2. Show Answer Correct Answer: C) 4. ← 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