This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What forces determine stock prices? A) Supply and Demand. B) Corporations and Partnerships. C) Government Regulations. D) Gravity and Friction. Show Answer Correct Answer: A) Supply and Demand. 2. Why do companies issue stocks? A) To create and investment opportunity into other businesses. B) To increase employee cooperation and an operating level. C) To be traded individually. D) To raise money for economic investment and to fund operating costs. Show Answer Correct Answer: D) To raise money for economic investment and to fund operating costs. 3. Financial Institutions can better bear the risk of mismatching the maturities of their assets and liabilities. A) Monitoring Costs. B) Maturity Intermediation. C) Denomination Intermediation. D) Credit Allocation. Show Answer Correct Answer: B) Maturity Intermediation. 4. To conclude, does islamic finance achieve the ultimate objective of shariah A) Ambiguous depend on the way the development is conceptualised. B) No because the the inequality still rising. C) Yes because the muslim can use the halal financing. D) None of above. Show Answer Correct Answer: A) Ambiguous depend on the way the development is conceptualised. 5. Which institution was the first Indian public sector bank to set up its investment banking division in 1972? A) SBI. B) PNB. C) ICICI. D) IDBI. Show Answer Correct Answer: A) SBI. 6. All of the following belong in M1 except? A) Bills. B) Coins. C) Checking Accounts. D) Saving Accounts. Show Answer Correct Answer: D) Saving Accounts. 7. This term refers to how easily an asset can be converted to cash: A) Liquidity. B) Commodity. C) Currency. D) Eurobond. Show Answer Correct Answer: A) Liquidity. 8. The IMF provided funds in 2008 to help Iceland support its banks and stabilise its currency. 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. 9. ..... the dollars that become available for investors to use when others refrain from consuming A) Risk. B) Equities. C) Bond. D) Savings. Show Answer Correct Answer: D) Savings. 10. Global market in convertible currencies are traded and their conversion rates are determined. A) Foreign Exchange Market. B) Equity Market. C) Auction Market. D) Debt Market. Show Answer Correct Answer: A) Foreign Exchange Market. 11. Money market deals in ..... A) Medium-term securities. B) Short term Securities. C) Long term Securities. D) None of these. Show Answer Correct Answer: B) Short term Securities. 12. ....is an institution or arrangement that facilitates the exchange of financial instruments. A) Financial market. B) Capital market. C) Organised sector. D) Unorganised sector. Show Answer Correct Answer: A) Financial market. 13. SEBI GOVERNS A) Financial Market. B) Money Market. C) Capital Market. D) International Market. Show Answer Correct Answer: C) Capital Market. 14. What is the term describing an overall decrease in stock prices? A) A bull market. B) Market capitalization. C) Market diversification. D) A bear market. Show Answer Correct Answer: D) A bear market. 15. Canary Isle is small country where the government injected $ 500 m into the economy to keep the exchange rate at a determined value. Identify this exchange rate regime. A) Fixed. B) Mixed. C) Managed. D) Flexible. Show Answer Correct Answer: A) Fixed. 16. What is the current central banking system of the United States called? A) National Bank. B) 1st Bank of the United States. C) Federal Deposit Insurance Corporation (FDIC). D) Federal Reserve System. Show Answer Correct Answer: D) Federal Reserve System. 17. Financial Markets facilitates business firms to A) Raise funds. B) Recruit workers. C) Increase Sales. D) Minimise fund requirements. Show Answer Correct Answer: A) Raise funds. 18. Principal A) The ability to be used as, or directly converted into cash. B) The price paid for the use of borrowing money. C) Amount of money borrowed. D) None of above. Show Answer Correct Answer: C) Amount of money borrowed. 19. Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach? A) A. Secondary market. B) B. Primary market. C) C. Financial markets. D) Money market. Show Answer Correct Answer: A) A. Secondary market. 20. The minimum period till which a debt instrument must be retained in order to qualify as Long Term is: A) 1 year. B) 2 year. C) 3 year. D) 4 year. Show Answer Correct Answer: C) 3 year. ← 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