This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 21 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What kind of fund collects and invests income for later payments to eligible recipients? A) Pension fund. B) Credit union fund. C) Insurance fund. D) Mutual fund. Show Answer Correct Answer: A) Pension fund. 2. A market that is involved in the trading of debt instruments such as government and corporate bonds, as well as has an involvement with the trading of packaged loan products that are sold to investors. A) Debt Market. B) Equity Market. C) Auction Market. D) Over-the-counter Market. Show Answer Correct Answer: A) Debt Market. 3. Less regulation in the financial markets helped banks to be more profitable. 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. 4. Training of intermediaries of the securities market is ..... function of SEBI. A) Regulatory function. B) Development function. C) Protective function. D) None of the above. Show Answer Correct Answer: B) Development function. 5. THE TWO PARTS OF CAPITAL MARKET ARE A) MONEY MARKET AND STOCK MARKET. B) PRIMARY MARKET AND SECONDARY MARKET. C) CALL MONEY MARKET AND STOCK MARKET. D) NONE OF THE ABOVE. Show Answer Correct Answer: B) PRIMARY MARKET AND SECONDARY MARKET. 6. Assume that the dividend on Central Power Company's $ 3.25 preferred stock issue is paid annually at the endof the year. Determine the price of this issue if its return is 12%. A) $ 25.25. B) $ 26.25. C) $ 38.57. D) $ 27.08. Show Answer Correct Answer: D) $ 27.08. 7. What is a good description of a Commodity? A) A basic good that is typically sold in retail stores. B) A basic good that extremely rare and unusual. C) A basic good used on commerce that is interchangeable with other goods of the same type. D) A basic good that is in unlimited supply. Show Answer Correct Answer: C) A basic good used on commerce that is interchangeable with other goods of the same type. 8. The oldest and most prestigious market in the United States where the most secure corporations trade A) New York Stock Exchange. B) National Association of Securities Dealers Automated Quotation. C) Standard and Poors 500. D) Dow Jones Industrial Average. Show Answer Correct Answer: A) New York Stock Exchange. 9. Which organizations was not created under Bretton Woods era? A) The International Bank for Reconstruction and Development (World Bank). B) The International Monetary Fund (IMF). C) United Nation (UN). D) None of above. Show Answer Correct Answer: C) United Nation (UN). 10. What type of instruments are traded in a Money Market? A) Call money. B) Treasury bills. C) Commercial bills. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. What is a SIFI? A) Systemically Incorporated financial institution. B) Sanfrancisco International Financial Institution. C) Systematically Important Financial Investment. D) Systematically Important Financial Institution. Show Answer Correct Answer: D) Systematically Important Financial Institution. 12. What are bonds? A) Loans or IOU's. B) Banks. C) A little piece of paper you get at Christmas. D) None of above. Show Answer Correct Answer: A) Loans or IOU's. 13. The representative money essentially functioned as an IOU, we were pleased with the receipt of said document as it is an asset A) Representative Money. B) Fiat Money. C) Commodity Money. D) Specie. Show Answer Correct Answer: A) Representative Money. 14. All of the following are low-risk investments EXCEPT A) Junk bonds. B) Treasury bonds. C) Municipal bonds. D) Savings bonds. Show Answer Correct Answer: A) Junk bonds. 15. Determine the Bid/ask spread with the following given data:Currency is British pound;Bid rate is $ 1.52;Ask rate is $ 1.60What is the bid/ask percentage spread? A) 0.05 or 5%. B) 0.04 or 4%. C) 0.06 or 6%. D) 0.03 or 3%. Show Answer Correct Answer: A) 0.05 or 5%. 16. All of the following are basic components of bonds EXCEPT A) Maturity. B) Treasury bonds. C) Par value. D) Coupon rate. Show Answer Correct Answer: B) Treasury bonds. 17. A country has a comparative advantage in the production of a commodity when it A) Produces more with same input. B) Produces less with same input. C) Produces same output with same input. D) Produces at a lower opportunity cost. Show Answer Correct Answer: D) Produces at a lower opportunity cost. 18. Income not used for consumption A) Investment. B) Savings. C) Diversification. D) Return. Show Answer Correct Answer: B) Savings. 19. The Jamaican dollar moves from J$ 145 = US$ 1 to J$ 150 = US$ 1 due to market forces. This means that A) Jamaican dollar has appreciated. B) Jamaican dollar had depreciated. C) Jamaican dollar has devalued. D) Jamaican dollar has revalued. Show Answer Correct Answer: B) Jamaican dollar had depreciated. 20. Capital market do not provide A) Short term Funds. B) Debenture Funds. C) Equity Funds. D) Long term Funds. Show Answer Correct Answer: A) Short term Funds. ← 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