This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How much do you feel bored in the class? A) Very much. B) Not at all. C) 10-30%. D) More than 50%. Show Answer Correct Answer: B) Not at all. 2. In primary markets, property of shares which made it easy to sell newly issued security is considered as A) Increased liquidity. B) Decreased liquidity. C) Money Flow. D) Large funds. Show Answer Correct Answer: A) Increased liquidity. 3. A marketable document of title to a time deposit for a specified period may be referred to as a ..... A) Treasury Bill. B) Certificate of Deposit. C) Commercial Bill. D) Government Securitites. Show Answer Correct Answer: B) Certificate of Deposit. 4. ..... are short-term loans in which Treasury bills serve as collateral. A) Repurchase agreements. B) Negotiable certificates of deposit. C) Federal funds. D) U.S. government agency securities. Show Answer Correct Answer: A) Repurchase agreements. 5. ..... is an agreement to buy or sell at a specific date in the future at a predetermined price A) Equities. B) Futures contract. C) Bond. D) Savings. Show Answer Correct Answer: B) Futures contract. 6. Which of the following are the instruments of money market? A) Call money. B) Certificate of deposits. C) Trade bills. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Processing accurately all shareholder transactions is a role of a A) Broker. B) Dealer. C) Transfer Agent. D) Commercial Bank. Show Answer Correct Answer: C) Transfer Agent. 8. Any item that is widely accepted in exchange for the goods and services offered to consumers in a given market. A) Unit of account. B) Medium of exchange. C) Store of value. D) Greenbacks. Show Answer Correct Answer: B) Medium of exchange. 9. When securities are allotted to institutional investors & some selected individuals is referred to as ..... A) Initial public offer. B) Offer through prospectus. C) Private placement. D) Offer for sale. Show Answer Correct Answer: C) Private placement. 10. Financial market ..... financial assets. A) Creates. B) Exchange. C) Creates and Exchange. D) None of the above. Show Answer Correct Answer: C) Creates and Exchange. 11. World's largest stock exchange founded in 1790. A) NASDAQ. B) AMEX. C) NYSE. D) EuroNext. Show Answer Correct Answer: C) NYSE. 12. ..... is a person invests in financial markets to reduce the risk of price volatility in exchange markets. A) Hedger. B) Arbitrageur. C) Speculator. D) Risk seeker. Show Answer Correct Answer: A) Hedger. 13. Primary market is associated with ..... issues. A) Old. B) New. C) Old and New. D) Very Old. Show Answer Correct Answer: B) New. 14. Financial markets and institutions A) Involve the movement of huge quantities of money. B) Affect the profit of business. C) Affect the type of goods and services produced in an economy. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. Which of the following is an advantage of a 401(k) plan? A) Most employers match a portion of your contributions. B) You may withdraw funds at any time without penalty. C) You never pay taxes on your contributions. D) Your contributions are invested in high-return, high-risk fund. Show Answer Correct Answer: A) Most employers match a portion of your contributions. 16. What is the relationship between risk and return? A) Inverse. B) Direct. C) Multiple. D) Opposite. Show Answer Correct Answer: B) Direct. 17. Shares of stock from a variety of companies that you own are called? A) Dividend. B) Portfolio. C) Commission. D) Diversity. Show Answer Correct Answer: B) Portfolio. 18. It is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year. A) Primary market. B) Secondary market. C) Capital market. D) Money market. Show Answer Correct Answer: D) Money market. 19. A document that discloses information about a company's earnings, assets, and liabilities A) Corporate Bond. B) Treasury Bond. C) Prospectus. D) Contract. Show Answer Correct Answer: C) Prospectus. 20. Stock that guarantees dividends but gives no voting rights A) Common stock. B) Preferred stock. C) Stock exchange. D) Primary stock. Show Answer Correct Answer: B) Preferred stock. ← PreviousNext →Related QuizzesFinance QuizzesFinancial Markets Quiz 1Financial Markets Quiz 3Financial Markets Quiz 4Financial Markets Quiz 5Financial Markets Quiz 6Financial Markets Quiz 7Financial Markets Quiz 8Financial Markets Quiz 9Financial Markets Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books