This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. COMMERCIAL PAPERS ARE GENERALLY ISSUED BY A) GOVT. OF INDIA. B) FINANCIAL INSTITUTIONS. C) WELL REPUTED COMPANIES. D) RBI. Show Answer Correct Answer: C) WELL REPUTED COMPANIES. 2. Which of the following is an example of a capital market instrument? A) .S. Treasury bills. B) Banker's acceptance. C) Preferred stocks. D) Stock options. Show Answer Correct Answer: C) Preferred stocks. 3. Which of the following is the largest stock exchange in the world? A) BSE. B) London Stock Exchange. C) NASDAQ. D) NYSE. Show Answer Correct Answer: D) NYSE. 4. Spreading out investments to reduce risk. A) Shares. B) Stocks. C) Diversification. D) None of above. Show Answer Correct Answer: C) Diversification. 5. Corporate financing comes ultimately from: A) The financial markets and intermediaries. B) Cash generated from the firm's operations. C) The issue of shares in the firm. D) Savings by households and foreign investors. Show Answer Correct Answer: D) Savings by households and foreign investors. 6. An ..... is simply the rate at which one currency is converted into another. A) Exchange rate. B) Conversion rate. C) Interest rate. D) None of above. Show Answer Correct Answer: A) Exchange rate. 7. When stocks overall are rising, the market is called? A) A bull market. B) A bear market. C) Market capitalization. D) Market diversification. Show Answer Correct Answer: A) A bull market. 8. ..... a strategy of holding different kinds of investments to minimize risk A) Portfolio diversification. B) Bond. C) Futures contract. D) Risk. Show Answer Correct Answer: A) Portfolio diversification. 9. It is used as an alternative to bank borrowing for large and creditworthy companies, A) Commercial bill. B) Commercial papers. C) Call money. D) None of the above. Show Answer Correct Answer: B) Commercial papers. 10. The following are referred to as leakages out of the flow of national income EXCEPT:* A) Imports. B) Taxes. C) Savings. D) Exports. Show Answer Correct Answer: D) Exports. 11. The IMF and World Bank have both stepped in to help countries in the aftermath of the financial crisis. 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. 12. What is the term for the symbol of a company? (ex. Apple is AAPL) A) Portfolio. B) Stock symbol or ticker. C) Earnings. D) Exchange. Show Answer Correct Answer: B) Stock symbol or ticker. 13. Which of the following is an example of representative money? A) A fur coat. B) Diamonds. C) Gold earrings. D) An IOU note. Show Answer Correct Answer: D) An IOU note. 14. Which one of the following is NOT a function of financial intermediaries? A) Intermediation. B) Direct lending between savers and borrowers. C) Fund raising. D) Wallet services. Show Answer Correct Answer: D) Wallet services. 15. Which government agency watches over the financial market & protects investors from fraud? A) FCC. B) FDIC. C) SEC. D) ABC. Show Answer Correct Answer: C) SEC. 16. If governments print too much money and flood the market with currency it causes ..... This is bad for the overall economy because prices will rise quickly and savings will be lost. A) Tariffs. B) Deregulation. C) Inflation. D) More demand for money. Show Answer Correct Answer: C) Inflation. 17. Instruments traded in capital market are: A) Debentures. B) Bonds. C) Equity shares and preferences shares. D) All of these. Show Answer Correct Answer: D) All of these. 18. ..... is not participants in money market. A) SEBI. B) MUTUAL FUNDS. C) RBI. D) NBFCs. Show Answer Correct Answer: A) SEBI. 19. ..... agents bring investors / customers to mutual funds for commission A) Market Making. B) Selling and Distribution. C) Transfer. D) Custodian. Show Answer Correct Answer: B) Selling and Distribution. 20. Primary market is also called as A) Secondary market. B) Money market. C) New Issue Market. D) Indirect Market. Show Answer Correct Answer: C) New Issue Market. ← 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