This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Derivatives are usually ..... instruments, which increases their potential risks and rewards. A) Uncertain. B) Hazardous. C) Long lasting. D) Leveraged. Show Answer Correct Answer: D) Leveraged. 2. You need a new computer, and you will need a loan in order to buy one. which lender is most likely to charge you the highest interest rate on your loan? A) Savings and loan association. B) Savings bank. C) Credit union. D) Finance company. Show Answer Correct Answer: D) Finance company. 3. Which of the following is the prominent risk in forward contract? A) Market risk. B) Inflation risk. C) Counterparty risk. D) Interest rate risk. Show Answer Correct Answer: C) Counterparty risk. 4. An investment bank helps ..... issue securities A) A Corporation. B) Government. C) Foreign governments. D) None of above. Show Answer Correct Answer: A) A Corporation. 5. Which stock exchange will trade OTC stocks? A) NYSE. B) AMEX. C) SEC. D) NASDAQ. Show Answer Correct Answer: D) NASDAQ. 6. What is the best example of an action(s) that the Federal Reserve (Fed) can take to stabilize our economy? A) Print money. B) Raise interest rates. C) Require other banks to keep a minimum balance. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. A monetary system that backs its currency with a reserve of gold, and allows currency holders to convert their currency into gold. A) Reserves. B) Foreclosures. C) Gold standard. D) Fiat Money. Show Answer Correct Answer: C) Gold standard. 8. In primary markets, first time issued shares to be publicly traded, in stock markets is considered as A) Traded offering. B) Public markets. C) Issuance offering. D) Initial public offering. Show Answer Correct Answer: D) Initial public offering. 9. Issued by Federal Reserve Banks to handle sudden increases in the demand for currency in a particular area. A) Federal Reserve Note. B) Monetary Policy. C) Check Clearing. D) Specie. Show Answer Correct Answer: A) Federal Reserve Note. 10. In Nepal, the institution which buys or sells equities on his own account directly through the exchange is called ..... A) Broker agent. B) Financial advisor. C) Stock dealer. D) Stock broker. Show Answer Correct Answer: C) Stock dealer. 11. A forward contract is an agreement to buy or sell an underlying asset at some time in the ....., at a price agreed upon ..... A) Spot; today. B) Spot; forward. C) Future; today. D) Future; forward. Show Answer Correct Answer: C) Future; today. 12. Investing in a money market mutual fund in a certificate of deposit because unlike CDs, money market funds A) Are not insured by the FDIC. B) Are not protected by the Securities and Exchange Commission. C) Do not earn a fixed interest rate. D) Must be held for a preset amount of time. Show Answer Correct Answer: A) Are not insured by the FDIC. 13. . It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio. A) Commercial bill. B) Commercial papers. C) Call money. D) None of the above. Show Answer Correct Answer: C) Call money. 14. Which of the following organization is the regulator of mutual funds in India A) CRISIL. B) SEBI. C) RBI. D) AMFI. Show Answer Correct Answer: B) SEBI. 15. ..... is a part of capital market. A) Call Money. B) Primary Market. C) Secondary Market. D) Primary and Secondary Market. Show Answer Correct Answer: D) Primary and Secondary Market. 16. Which component is not a part of capital market? A) Debt Market. B) Equity Market. C) Insurance Market. D) Derivative Market. Show Answer Correct Answer: C) Insurance Market. 17. Trading center with established rules and regulations, and where buyers and sellers meet to trade futures contracts and options in commodities and financial instruments A) Futures Market. B) Spot Market. C) Equity Market. D) Commodity Market. Show Answer Correct Answer: A) Futures Market. 18. Who is an ISSUER of a Security? A) Provides portfolio services. B) Offers a security-such as a stock or bond-for sale to the public. C) An institution authorized to pay the principal plus premium. D) Entity that interposes itself as the buyer to every selling brokerage firm. Show Answer Correct Answer: B) Offers a security-such as a stock or bond-for sale to the public. 19. Which is the major part of financial system? A) Financial market. B) Financial institutions. C) Financial securities. D) All of above. Show Answer Correct Answer: D) All of above. 20. The expected rate of return of the money market is ..... A) Very high. B) Less. C) Zero. D) None of the above. Show Answer Correct Answer: B) Less. ← 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