Financial Markets Quiz 19 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Secondary market is also known as

Correct Answer: D) Stock Exchange.

2. ..... is a market for converting the currency of one country into another country.

Correct Answer: B) The foreign exchange market.

3. The market for new issue shares is known as .....

Correct Answer: B) Primary market.

4. The interest rate paid on a bond

Correct Answer: A) Coupon rate.

5. Which of the following is an example of the secondary market?

Correct Answer: D) NYSE.

6. Stock that is paid first and offers no voting rights

Correct Answer: B) Preferred stock.

7. Instruments with a maturity period less than one year are traded in:

Correct Answer: A) Money market.

8. What is a SWF

Correct Answer: A) Sovereign Wealth Fund.

9. NBFC does not Include

Correct Answer: D) All of the above.

10. Private Consumption $ 800; Government Spending $ 300; Gross Investment $ 100; Exports $ 80 and Imports $ 50. What is the GDP? *

Correct Answer: D) $ 1230.

11. Which product is most likely to have a higher fee:

Correct Answer: A) Regular mutual fund.

12. One of 12 regional banks established to maintain reserves, issue bank notes, and lend money to member banks.

Correct Answer: A) Federal Reserve Bank.

13. One of the harmful practices in financial securities whereas "hot" IPO issues were allocated to directors and executives.

Correct Answer: C) Spinning.

14. To meet floatation cost, firms generally issue the following instrument of moneymarket.

Correct Answer: B) Commercial Paper.

15. What is NOT a government bond?

Correct Answer: D) Junk.

16. This financial instrument is related to money market

Correct Answer: B) Certificate of deposit.

17. The allocated function is performed by

Correct Answer: D) All of the above.

18. The spot exchange rate is the rate at which a foreign exchange dealer converts one currency into another currency on a .....

Correct Answer: C) Day.

19. The exchange of goods or services without the use of money as currency.

Correct Answer: A) Barter.

20. This Is a basic good used in commerce that is interchangeable with other commodities of the same type

Correct Answer: A) Commodity.