This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 18 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which two investments are at opposite ends of the risk spectrum? A) Treasury notes and futures. B) Savings bonds and Treasury notes. C) Equities and futures. D) Equities and futures. Show Answer Correct Answer: A) Treasury notes and futures. 2. The regulation of the money supply and interest rates by a central bank, such as the Federal Reserve Board in the U.S., in order to control inflation and stabilize currency A) Foreclosures. B) Reserves. C) Monetary policy. D) Check clearing. Show Answer Correct Answer: C) Monetary policy. 3. Who undertakes the administration and investment activities of the fund (mutual fund)? A) Sponsor. B) AMC-Asset Management Company. C) Trustee. D) Distributor. Show Answer Correct Answer: B) AMC-Asset Management Company. 4. Which of the following statements is not true with regard to money market? A) It involves low market risk. B) It is situated at specific locations. C) Deals in unsecured and short-term debt instruments. D) The instruments traded are highly liquid. Show Answer Correct Answer: B) It is situated at specific locations. 5. How do savings bonds differ from other forms of bonds? A) Higher return rate. B) Shorter time period. C) Lower price at time of purchase. D) Provides interest payments. Show Answer Correct Answer: C) Lower price at time of purchase. 6. People who hold shares are known as ..... A) Stockbrokers. B) Bankers. C) Shareholders. D) General public. Show Answer Correct Answer: C) Shareholders. 7. Regulation usually focuses on Competition-making financial markets competitive to benefit consumers. 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. 8. Bank can raise money by ..... A) Issue securities. B) Borrow from other bank. C) Borrow from BNM. D) All of above. Show Answer Correct Answer: D) All of above. 9. What is the maximum duration for which term money can be lent/borrowed? A) 1 day. B) 15 days. C) 30 days. D) 1 year. Show Answer Correct Answer: D) 1 year. 10. The regulatory body for the securities market in India is ..... A) RBI. B) SEBI. C) IRDA. D) TRAI. Show Answer Correct Answer: B) SEBI. 11. Financial market facilities business firms A) To rise funds. B) To recruit workers. C) To make more sales. D) To minimize funds requirement. Show Answer Correct Answer: A) To rise funds. 12. Who issues treasury bills( T-bills) in Malaysia? A) BNM. B) Investment Banks. C) Malaysian Government. D) Commercial Banks. Show Answer Correct Answer: C) Malaysian Government. 13. In the past financial markets were less regulated. 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. 14. ..... IS ALSO KNOWN AS 'ZERO COUPAN BOND' A) COMMERCIAL PAPER. B) DEBENTURES. C) T-BILLS. D) TRADE BILLS. Show Answer Correct Answer: C) T-BILLS. 15. Financial Market is classified into A) Organized and unorganized market. B) Regulatory and non-regulatory market. C) Reformatory and non-reformatory market. D) Controlled and uncontrolled Market. Show Answer Correct Answer: A) Organized and unorganized market. 16. The delivery of financial services electronically is called: A) E-Business. B) E-Finance. C) E-Commerce. D) None of above. Show Answer Correct Answer: B) E-Finance. 17. Which of the following is the supply side of finance? A) Financial Institutions. B) Insurance Companies. C) Financial Institutions and Insurance Companies. D) Industry. Show Answer Correct Answer: C) Financial Institutions and Insurance Companies. 18. Typically, borrowers have superior information relative to lenders about the potential returns and risks associated with an investment project. The difference in information is called A) Moral Selection. B) Risk Sharing. C) Asymmetric information. D) None of above. Show Answer Correct Answer: C) Asymmetric information. 19. The financial instrument with shortest maturity period is A) Call money. B) Certificate of deposit. C) Commercial bill. D) Treasury bill. Show Answer Correct Answer: A) Call money. 20. A bonus share announced by a company: A) Increases the profit made by the company. B) Increases the EPS. C) Decreases the EPS. D) Reduces the free float of the company. Show Answer Correct Answer: C) Decreases the EPS. ← 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